A federal judge affirmed an eBay seller's right to resell promotional CDs that he buys from secondhand stores, according to the Electronic Frontier Foundation (EFF), which represented the seller. Universal Music Group (UMG) accused Troy Augusto of copyright infringement over 26 auction listings involving promo CDs. At issue was whether the "promotional use only, not for sale" labels on those CDs could trump Augusto's right to resell materials that he owns, guaranteed by copyright law's "first sale" doctrine. The EFF published a statement on its website, stating in part:

In dismissing UMG's lawsuit late Tuesday, 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 without any expectation or intention of their return. The first sale doctrine says that once the copyright owner sells or gives away a copy of a CD, DVD, or book, the recipient is entitled to resell that copy without further permission.

http://www.eff.org/press/archives/2008/06/11