UMG Recordings, Inc. v. Augusto
United States Court of Appeals for the Ninth Circuit
628 F.3d 1175 (2011)
UMG Recordings, Inc. (plaintiff) sent compact discs (CDs) containing copyrighted music unsolicited to various individuals for marketing purposes. The CDs had labels stating that they were for promotional purposes and were not for resale. Troy Augusto (defendant) obtained the CDs and sold them at auction. UMG brought suit, claiming that Augusto violated UMG’s exclusive right to distribute its copyrighted music on the CDs. Augusto argued that UMG’s distribution of the CDs constituted transfers of ownership, invoking the first-sale doctrine. UMG argued that the distribution conferred only a license to the recipients, not ownership. The United States District Court for the Central District of California granted summary judgment to Augusto. UMG appealed.
Rule of Law
Holding and Reasoning (Canby, J.)
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