Losing control – Ninth Circuit examines distribution’s role in copyright case

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Abstract: When copyright holders release their creations, they can retain some control through licensing agreements. So one music company sued the recipient of recordings it had sent to him, unsolicited and free of charge, when he then sold them on eBay. But the court ruled that the company’s “Promotional Use — Not for Sale” label was insufficient to establish a license. This article explains the court’s reasons, while a sidebar examines the role of the Unordered Merchandise statute in this case. UMG Recordings, Inc. v. Augusto, No. 08-55998, Jan. 4, 2011 (9th Cir.)