Press Releases|February 6, 2012

ReDigi Wins Major Victory In Court Hearing Over Pre-Owned Digital Music, Capitol Records (EMI) vs. ReDigi

Capitol Records (EMI) denied motion request for a preliminary injunction in the U.S. District Court in New York today

New York, NY–February 6, 2012– Today ReDigi (www.ReDigi.com), the online marketplace for pre-owned digital music and revolutionary cloud service technology that verifies the legitimacy of a digital music file before it can be uploaded for storage, won a major victory in a court hearing today when Capitol Records was denied a request for a preliminary injunction in an attempt to shut down ReDigi.  This is an exciting step forward for ReDigi’s and the purchasing public’s fight to keep consumers’ intrinsic and lawful ownership rights to their digital property intact at a time when Capitol Records is fighting desperately to confiscate these rights.

In Capitol’s filing, the label challenged the legal principles at the foundation of the entire cloud computing industry, worth an estimated 41 billion dollars per year, of which ReDigi is a pioneer and emerging leader.  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.

“This is a fascinating issue,” stated District Judge, Richard J. Sullivan, who turned down Capitol’s request for a preliminary injunction. “It raises a lot of technological and statutory issues.”

In our increasingly digital world, ReDigi is breaking down the barriers that have kept consumers from enjoying their intrinsic and lawful ownership rights to their digital purchases. Through its Marketplace, ReDigi transposes the familiar process of selling a used CD or LP onto the digital world, enabling consumers to exercise their ownership rights lawfully, observing and preserving the legitimate rights of the artists and labels in their copyrighted music.

ReDigi’s Founder and CEO John Ossenmacher said of the decision, “We are grateful for the judge’s decision in our favor.  Our technology is helping consumers unlock billions of dollars of previously unrealized wealth in their digital media collections.  We hope today’s ruling will help to expedite the trial so that we can get back to our business and providing consumers with access this incredible technology.  And we hope 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.”

“Technology has done a great job of virtualizing physical goods, such as removing the clutter of records and CDs in our living rooms.  Technology can now make the virtual goods feel like physical,” explains Prof. Larry Rudolph, ReDigi’s CTO.  ”Our advanced technology can distinguish legally acquired online music files from those ripped from a CD or file shared, but more significantly, our use of cloud computing and other modern computer techniques makes transfer of ownership compatible with copyright regulations.   ReDigi is the pioneer of the ‘cloud as the digital goods marketplace’ — the marketplace of the future — where people go to buy and sell and where sophisticated technology ensures safety, legality, and convenience.”

To review ReDigi’s response to Capitol’s request for a preliminary injunction which were reviewed by the Judge who ruled today in ReDigi’s favor, visit:

Declaration of Ray Beckerman in opposition to preliminary injunction motion

Declaration of John Ossenmacher in opposition to preliminary injunction motion

Declaration of Larry Rudolph in opposition to preliminary injunction motion

Defendant’s memorandum of law in opposition to preliminary injunction motion (ReDigi)

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About ReDigi

ReDigiTM is the online marketplace for pre-owned digital music and the only Cloud service that verifies whether each music file uploaded for storage was legally acquired from an eligible source. ReDigi’s patent pending methods are revolutionary.  In addition to the highly sophisticated Verification Engine, the Atomic Cloud transfer system enables the transfer of a digital music file between buyer and seller without copying or file sharing. In addition to these technological breakthroughs, ReDigi supports artists directly through a unique platform that, for the first time in the secondhand music market, grants generous payments from each track sold (and resold) directly to the artist who created it.

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