ReDigi

Last updated
ReDigi
Screenshot
Type of site
Secondhand digital media sales
URL redigi.com
CommercialYes
RegistrationOptional
Current statusOffline

ReDigi was an online marketplace for used digital music, eBooks, games, apps, and software. It claims to be the only cloud storage service that verifies whether each digital file uploaded for storage was legally acquired from an eligible source. ReDigi's Cloud and Marketplace only accept lawfully purchased digital media. [1] The service allowed users to buy and sell pre-owned digital content directly from one user to another. [1] As of December 2020, the website is offline.[ citation needed ]

Contents

History

ReDigi launched its public beta site in October 2011. [2] It was founded by John Ossenmacher, along with his daughter, who had the idea of creating an online drop box where people could donate their unwanted digital media. Ossenmacher hired a team of programmers, mathematicians, business professionals, and legal advisors to build the service.

ReDigi filed voluntary petitions for Chapter 11 reorganization in United States bankruptcy court in August 2016. The company arranged multiple sources of funding to restructure its current debt and planned to exit its restructure in 2017. [3]

Services currently offered include cloud storage for verifiable music, ebooks and other digital goods that were legally purchased, cloud streaming for listening to stored music, reading books, and utilizing other digital media, and buying and selling of used digital goods such as music, ebooks, games, apps and other digital media directly from other users on ReDigi.

Capitol Records lawsuit

In January 2012, Capitol Records sued ReDigi in New York Federal Court stating that Redigi was liable for contributing to copyright infringement demanding that ReDigi remove Capitol-owned material and pay $150,000 per track. [2] On February 6, 2012, U.S. District Judge Richard Sullivan denied the preliminary injunction. [4] [5]

Vicarious liability for copyright infringement exists where the defendant "has the right and ability to supervise the infringing activity and also has a direct financial interest in such activities." [6] In ReDigi, the court held ReDigi vicariously liable because it "exercised complete control over its website's content, user access, and sales," and financially benefited from every sale due to its transaction fee. [7]

On March 30, 2013, the judge granted in part a summary judgment motion in favor of Capitol Records. The court stated:

ReDigi has vicariously infringed Capitol's copyrights" and found RediGi guilty of direct contributory infringement. ReDigi seeks judicial amendment of the Copyright Act to reach its desired policy outcome. However, "[s]ound policy, as well as history, supports [the Court's] consistent deference to Congress when major technological innovations alter the market for copyrighted materials. Congress has the constitutional authority and the institutional ability to accommodate fully the varied permutations of competing interests that are inevitably implicated by such new technology. Sony, 464 U.S. at 431. Such deference often counsels for a limited interpretation of copyright protection. However, here, the Court cannot of its own accord condone the wholesale application of the first sale defense to the digital sphere, particularly when Congress itself has declined to take that step. [8]

On April 20, 2013, United States District Court, Southern District of New York has ruled that ReDigi is engaged in illegal activity. Judge Richard J. Sullivan wrote that "ReDigi has vicariously infringed" on copyrights and found ReDigi guilty of direct contributory infringement. [9]

The 2nd Circuit Court of Appeals heard ReDigi's appeal on August 22, 2017. [10] [11] [12] The Library association and Twenty-Four significant, University Law Professors, back ReDigi at appeal. [13] [14]

Technology

ReDigi's technology is patented, [15] and has additional patents pending.[ citation needed ] Features of the ReDigi system include:

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References

  1. 1 2 "Buy and Sell Everything Digital". ReDigi. 2017-08-22. Retrieved 2020-03-11.
  2. 1 2 Kravets, David (February 2, 2012). "Online Market for Pre-Owned Digital Music Hangs in the Balance". Wired . Retrieved 8 February 2012.
  3. "Company Bankruptcy Information for ReDigi Inc. 9:16-bk-20809". Businessbankruptcies.com. 2016-08-03. Retrieved 2020-03-11.
  4. Kravets, David (February 7, 2012). "Judge Refuses to Shut Down Online Market for Used MP3s" . Retrieved 8 February 2012.
  5. Sandoval, Greg (February 7, 2012). "Judge denies EMI's bid to halt resale of digital music". CNet . Retrieved 8 February 2012.
  6. A&M Records, Inc. v. Napster , 239 F.3d 1004 (9th Cir. 2001) Archived 2008-04-09 at the Wayback Machine
  7. "Capitol Records, LLC v. Redigi Inc. Filing: 109". 2013-03-30.
  8. "Capitol Records, LLC v. Redigi Inc., 1:12-cv-00095 (S.D.N.Y.) via Docket Alarm". Docket Alarm.
  9. Sullivan, Richard (30 March 2012). "US court to rule on ReDigi". court. Retrieved 18 March 2013.
  10. "Appeals Court Grapples With Digital Files, and the Business of Selling "Used" Songs". Hollywood Reporter. 2017-08-22. Retrieved 2020-03-11.
  11. "ReDigi Tells 2nd Circ. Digital Files Can Be Resold Like CDs - News Headlines - New York - LexisNexis® Legal Newsroom". Lexisnexis.com. 2017-08-22. Retrieved 2020-03-11.
  12. Albanese, Andrew (2017-08-22). "Will Ruling in ReDigi Case Open the Door to a Used E-book Market?". Publishersweekly.com. Retrieved 2020-03-11.
  13. "Libraries, Law Professors Back ReDigi In Fight Over 'Used' Music 02/16/2017". Mediapost.com. Retrieved 2020-03-11.
  14. "Copyright Law Profs Blast ReDigi Music Ruling At 2nd Circ". Law360. 2017-02-15. Retrieved 2020-03-11.
  15. "ReDigi Gets Patent to Manage and Sell Used E-books". Publishersweekly.com. 2014-01-29. Retrieved 2020-03-11.
  16. Peckham, Matt (2012-06-26). "ReDigi Lets You Resell Used Digital Music, but Is It Legal? || TIME.com". Techland.time.com. Retrieved 2020-03-11.
  17. "ReDigi's Artist Syndication Program on Vimeo". Vimeo.com. 2013-09-05. Retrieved 2020-03-11.