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Sheppard Mullin Richter & Hampton LLP | USA | 17 Jul 2008

UMG v. Augusto: allowing the sale of promotional CDs under the first sale doctrine could affect much more than the music industry

In a decision that could have far-reaching implications for technology licenses of all types, the U.S. District Court for the Central District of California recently held that the first sale doctrine permits a recipient of promotional CDs to sell them online without violating the license pursuant to which the CDs were distributed and without being liable for copyright infringement.

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