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Originally Posted by calvin-c
@Gumby, do you have a reference for that? Yes, software is considered a service-by the publisher. It's generally been considered a product by the courts though. And even a license for services can't (legally) prohibit resale although they can impose conditions (such as pre-approval of the buyer) that can effectively do the same thing.
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Capitol v. ReDigi, pg 4:
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The novel question presented in this action is whether a digital music file, lawfully made and purchased, may be resold by its owner through ReDigi under the first sale doctrine. The Court determines that it cannot.
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page 6:
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Because the reproduction right is necessarily implicated when a copyrighted work is embodied in a new material object, and because digital music files must be embodied in a new material object following their transfer over the Internet, the Court determines that the embodiment of a digital music file on a new hard disk is a reproduction within the meaning of the Copyright Act.
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Selling the files isn't a violation of copyright. *COPYING* them is. If you want to sell digital files, make sure your first download is onto a portable drive, and sell the hardware along with the contents.