Universal Music Group (UMG) regularly ships free, unsolicited promotional CDs to music critics and others. The labels state that they are “the property of the record company” and for “Promotional Use Only—Not for Sale.” When Troy Augusto sold some of the CDs through online auction sites, UMG filed a complaint in a federal district court, alleging copyright infringement. UMG argued that it had only licensed the CDs to the recipients and that ownership had not transferred to Augusto. Could Augusto sell, or otherwise dispose of, the CDs? Explain. [UMG Recordings, Inc. v. Augusto, 628 F.3d 1175 (9th Cir. 2011)
Answered Essay: Universal Music Group (UMG) regularly ships free, unsolicited promotional CDs to music critics and others. The labels state that they are “the property of the record company” and
Expert Answer
As per me and I feel Augusta have no right to sell the UMG’s CD provided to them for sales promotional support activity in the mutual business interests of both UMG & AUGUSTA. Moreover it is also of emmotinal and sentimental importance to artists as they feel let down when it is found that there is auction of there CD’s instead of a value sale
UMG business reputation also shall be dented if this event of auctioning by Augusta was not questioned or fought legally. As many reputed artist may not perform for UMG thinking it to be misuse of their talent for cheap.
Augusta should had courtesy to enquire first with UMG before taking any action like online auctioning which is clear breach of trust by them
Even in case of stocking or maintenance issues of such CD being excess or has no direct sale value Augusta should have attempted to return the Such CDs in question
