Business News Digital Labels & Publishers Legal ReDigi Timeline

ReDigi insists it is ready to fight EMI over MP3 resale lawsuit

By | Published on Tuesday 1 May 2012


Good news for fans of complicated court-based copyright law debates, MP3 resale service ReDigi insists it is well resourced to fight the lawsuit being pursued against it by EMI.

As previously reported, ReDigi has been sued by the major label for providing a service that enables users to sell on their MP3s to third parties. ReDigi says that under US copyright law consumers should be able to resell MP3s in the same way they can resell CDs. EMI argues that the principle which applies to CDs does not apply to digital music. The judge who heard initial arguments on the case reckons it’s complicated, but should make for a “fascinating” court hearing.

So, expect lots of debating about the intricacies of US copyright law, some of which could impact on the wider cloud storage sector – assuming the case gets to court.

There has been speculation that start-up ReDigi, which is believed to have raised about half a million in finance, might not be able to afford to fight such a complicated legal battle. Some have noted that it wouldn’t be the first time a big company unhappy with a start-up’s business model had successfully put that start-up out of business by landing it in the middle of messy and expensive litigation – Universal’s legal fight against Veoh being an interesting case to study.

We reported yesterday that one of the lawyers working on the ReDigi case had told the courts he was stepping back from it, and Digital Music News noted that in his submission Ray Beckerman said he had a ‘retaining lien’ with his former client, which basically means the company owes him money. Some wondered whether this meant the predictions ReDigi might run out of cash before getting to court were coming true.

But the tech firm insists that is not the case, pointing out that it has hired the services of a new law firm as it prepares for its big court battle with EMI’s Capitol division. Assuming the courts approve the switch in legal representation, Meister Seelig & Fein LLP will fight ReDigi’s side in court. MSF, the tech firm says, has “resources, experience and expertise in copyright and music industry matters [that] make it especially well suited for its representation of ReDigi in this high-profile case”.

Confirming the appointment of new legal reps, ReDigi founder and CEO John Ossenmacher told CMU: “ReDigi has made a decision to bring in additional expertise in its litigation with Capitol. We are very pleased to have Meister Seelig & Fein in place to take the lead in this very important matter for ReDigi and the future of consumers’ digital rights. Meister Seelig brings the substantial resources of the firm’s entertainment, IP and litigation practices to bear as the case gears up for the hearing to take place later this year”.

Meanwhile the MSF lawyer who will lead the defence, Gary Adelman, added: “Our firm is excited to represent ReDigi in the Capitol Records litigation. ReDigi is a company that stands for the legal dissemination of music and they offer a proactive solution to piracy, which benefits the consumer, the artist and the record companies”.

READ MORE ABOUT: | | | | | |