First Sale

Judge Tosses Universal Music Lawsuit Against Promo CD Seller

Authored by Mark Hefflinger on June 12, 2008 - 9:36am.

San Francisco - A federal judge has dismissed a lawsuit filed by major label Universal Music Group against a California man who sold promotional CDs from the label on eBay. U.S. District Court Judge S. James Otero ruled that the promo CDs are gifts distributed by UMG, as they are mailed free and unsolicited to thousands of people -- including music journalists and radio stations -- without any expectation or intention of their return.