Universal Music Group: Throwing Away Promotional CDs Is An "Unauthorized Distribution"
All promotional CDs are forever the property of Universal Music Group and giving or throwing them away are "unauthorized distributions," according to a brief filed by UMG. In a lawsuit filed in federal court, UMG claims that ownership rights to promotional CDs, typically sent to DJs, reviewers, and others in the music business to generate hype for new releases, are expressly retained by the label. The Electronic Frontier Foundation is taking up the fight against this absurd position in UMG v. Augusto.
The defendant, Troy Augusto, is an eBay seller who sells promotional CDs that he finds at used record stores. UMG, a member of the reigning Worst Company in America, sued, claiming that Augusto was distributing their material in violation of UMG's copyright, and that any transfer, even to a garbage can, is unauthorized. August and EFF have counterclaimed that UMG is attempting to restrict Augusto's "first sale" rights. In their brief, they argue that the first sale doctrine allows Augusto, as owner of the CDs, the right to sell or transfer them as he sees fit. In establishing that UMG's distribution of promotional CDs is an effective transfer of ownership, EFF points out that UMG sends the CDs unsolicited and does not keep records of who receives the discs, nor do they typically attempt to have the CDs returned or warn recipients that they might try to:
In short, those to whom UMG mails "promo CDs" enjoy all the principal hallmarks of ownership: their possession is unlimited in time, they are under no obligation to return the CDs, and there is no penalty to them should the CDs be lost, damaged or destroyed. UMG, for its part, also behaves as though it has parted with ownership: it does not keep records regarding the whereabouts of the CDs, nor has it ever sought their return from the recipients.Both parties filed their motions for summary judgment in federal court a few days ago, and a ruling could come in early May.
UMG v. Augusto [Electronic Frontier Foundation]
(Photo: Getty)
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Comments:
@ndonahue: Oooh, reminds me of the law regarding gifts. Yup, if you didn't order it, you can keep it:
You, the consumer, may only legally be sent two types of merchandise through the mail without your consent or agreement:[1.] Free samples which are clearly and conspicuously marked as such.
[2.] Merchandise mailed by a charitable organization that is soliciting contributions.
You can consider the merchandise a gift if you wish....
If you open the package and don't like what you find, you may throw it away.
If you open the package and like what you find, you may keep it for free. In this instance, "finders-keepers" applies unconditionally.
Geez, I thought the record companies had some common sense.
Unless you have a written contract with the person you are giving the promo CDs to, I don't see how throwing them away or giving them away could be unauthorized distribution if you don't keep any copies (burned CDs or digital files on your computer).
It'd be moronic if you weren't allowed to throw something out. If you hated someone (e.x. anti net neutrality shill and former ATT board member Ed Whitacre), you could just send them loads of CDs with copyrighted content, and they'd have to store them infinitely.
@rmz: That would be too quick and painless. We need to waterboard them. I'm a capitalist, and I see the problem with people stealing music. But since about 2 years ago, I'm seeing they are getting crazy here. I mean come on. They are using our government, wasting our tax dollars pursuing this stuff, they are threatening universities. They are almost terrorists. lol
@rmz: We can put them on the same ship as all the old people:
Lets send more old people into space. Permanently. [Maddox]
(Actually, this is just an awesome excuse to test out the image-o-matic 3000.)
How did Agusto get the CDs? If he is getting them from a record store, then the store is likely violating UMG's rights. If he is getting them because he's a reviewer, then what constitutes a business relationship? He buys a UMG CD to review with his own money, UMG sees this and sends him more CDs to review, are these new CDs unsolicited or did his review create a relationship?
This post doesn't give us enough info to make a judgement.
I used to work in radio and the vast majority of these CDs were (and probably still are) used as prizes. "Caller 10 gets the latest CD from The Wallflowers" that sort of thing. The record labels gave them to radio for that express purpose. So even if the label did keep track of which stations got which CDs, there's no way of telling where they went from there. The labels gave away these CDs with the express purpose of them being given away on-air as a form of promotion. Therefore, they're prizes.
It would be no different than if the Frito-Lay Sweepstakes wanted Hollyfeld's RV back.
@Michael Belisle: If they sent it through USPS, yes, you are protected.
That didn't stop Paypal from still charging me for an order I'd made, then cancelled, then got shipped regardless of cancelllation, though. A complaint to the postal inspectors brought no relief.
I'm done with paypal. And that rule doesn't seem to have any teeth ... but if those CDs were shipped via US mail, it might actually get a judge to slap UMG.
@scarletvirtue: yeah, exactly! just like those people that were sending back AOL cds! We can inundate them with all of Ashley Simpson's cd!
@hypnotik_jello: Then the shop is likely violating UMG's agreement as any CDs they receive, promotional or otherwise, are not unsolicited because selling UMG CDs would create a business relationship. He should be OK, because UMG's beef should lie with the shop.
@mammalpants: "You kids, get off my lawn! And stop sharing my goddamn CDs with everyone!"
@copious28: I love it. I've got a stack of CDs that I've listened to, and put into my iTunes rotation - I'll start sending them back to the labels.
Look out UMG, et al - I'm sending a hell of a lot of CDs your way!
@Buran: If those CDs were shipped via US mail, it might actually get a judge to slap UMG.
Hopefully. It's invoked in Augusto's motion for summary judgement:
A.2.a UMG passed title to the CDs by operation of law under 35 U.S.C. § 3009.
Under federal postal and competition law, UMG, by shipping unordered "promo CDs," made a gift of the CDs to those who received them. The recipients thus had good title to the CDs, and were entitled to give or sell the CDs to the thrift stores, secondhand music shops, and eBay sellers from whom Augusto purchased them.
@scarletvirtue: ... anytime I get one of those free/promotional CDs at a street fair or wherever, once I'm done with it - I'll just send it back to the label.
Be sure to send it back "Postage Due" (No stamp or return address), so they have to pay to get their property back. (send it to the CEO)
Does this apply to Software as well? I have tons (and I mean TONS!) of AOL cd-roms that used to come a couple times a week dating back to the mid 1990's.. Even though I was a member back then, they sent me promo trial discs trying to get me to sign up.. I have stacks of them I just couldn't toss out, just thinking how many thousands of years they would be in a landfill (should have sent them out on re-writeable disks, so their recyclable).. I'd love to send them back on their dime, one at a time, once a week or so, so they can dispose of them properly! Corporations have to recycle their waste don't they?
This is such BS. And about 25% of my collection have been stamped promo or has a hole in the barcode. I've purchased them from used CD stores, pawn shops, Ebay, Amazon, etc.
I remember Garth Brooks and his alter ego tried to stop used CD sales before, saying that anytime a used CD is sold, he should he a cut off the money.
What next, will Ford restrict you from selling a car to another person?
@metaled: I read somewhere that those annoying free AOL CDs are about to become annoying free AOL flash drives! Pretty soon we will all have AOL flash drives (thumb drives, pen drives, whatever) arriving in our mailbox. Hello virus!!
This whole thing is asinine--sorry UMG, you can't make the rules for something you sent to me unsolicited.
Hell, I bet these promo CDs are somehow a net gain in the world of record company creative bookkeeping, so what are you bitchin' about UMG?
@CMU_Bueller: What agreement? A record store's order for CDs for sale is unrelated to the unsolicited promos they send to record stores and reviewers.
There is no contractual agreement here - record stores send out CDs unsolicited hoping record stores will consider stocking them and writers will review them. They're just hoping/pretending a sticker that says "for promotional use only" has any legal teeth.
Music studios are so stupid. If they really wanted the "For promotional use only" verbage to mean anything they need to have some sort of tracking system in place.
I worked at my college radio station, and work for a radio station conglomerate (not Clear Channel), and have a nice stack of albums and singles that are marked that way.
In college if we didn't put something in rotation it was up for grabs, though a large portion of those discs were for giveaways.
At my current job there are crates of discs in the lunchroom, and once the musical higher ups are done with discs, they place them for us to glean over. Heck, there are guys who order multiple copies of stuff to send to family members. The music companies know this is happening. It's foolish to stop it.
Plus, this is the cheapest way to get singles and not have to bother with whole crappy albums.
Actually most of the problems isn't with theft but with copyright infringement.
And if you're a capitalist, you believe in free markets. Copyright is a government granted monopoly -- hardly a free market.
You can argue that copyright is necessary (the good outweighs the bad), but it has nothing to do with a free market. It's just an incentive to get people to release their works which later become freely redistributable (after anywhere between 70 and 190 years)
If your poo is copyrightable, you could use the same reasoning. As long as the styling is minimally creative (lets say you sculpt it a certain way), it would be eligible for copyright.
The next step is enclosing a document that states the work is for promotional use only (writing "URGENT" on the box would be good as well). When they throw it away, you can file suit.
@stinerman: Not all capitalists believe in the free market. In fact, driving force in today's economy is neoliberalism, the state pulling levers to help multi-national corporations.
























Thank God for the EFF.