Capitol Records sued ReDigi, which allows individuals to sell pre-owned digital music files, and asked the court to prevent the company from offering its service.
So far, there is no final decision and the court asked both parties to submit a case management plan by February 20. However, it appears that there has been no compelling copyright infringement evidence against ReDigi and the judge appeared, at least initially, to side with argument that those who have ownership of digital goods have a right to sell them.
The company was clearly glad to have scored this victory and said that "Capitol’s disregard for the process of ReDigi’s advanced technology, which clearly works within the parameters of the law, has drawn the ire of both consumers and industry leaders such as Google, which petitioned the courts for permission to file its own brief in the case."
CEO John Ossenmacher said that he hopes that "Capitol can get back to their business and find a way to catch up to the times instead of trying to stop the innovation process, denying rights to their paying customers along the way.” ReDigi noted that it enables "consumers to exercise their ownership rights lawfully, observing and preserving the legitimate rights of the artists and labels in their copyrighted music."