The operators of an online music marketplace that allows users to buy and sell their legally downloaded music tracks are liable for direct and secondary copyright infringement, the U.S. District Court for the Southern District of New York held March 30 (Capitol Records L.L.C. v. ReDigi Inc., S.D.N.Y., 12-civ-95, 3/30/13).

The court rejected ReDigi Inc.'s argument that the resale of the digital tracks was protected by the first-sale doctrine.

That doctrine, the court said, only protects a defendant...