By its judgment delivered today, the Court explains that the principle of exhaustion of the
distribution right applies not only where the copyright holder markets copies of his
software on a material medium (CD-ROM or DVD) but also where he distributes them by
means of downloads from his website.
Where the copyright holder makes available to his customer a copy – tangible or intangible
– and at the same time concludes, in return form payment of a fee, a licence agreement
granting the customer the right to use that copy for an unlimited period, that rightholder
sells the copy to the customer and thus exhausts his exclusive distribution right.
The case concerned Oracle, which sued UsedSoft, a German company which bought and resold "used" software licenses which provided access to software downloads.
BMG Rights Management and Round Hill Music. has been trying to enlist Cox Cable as an accomplice in a copyright trolling scheme, demanding that the company pass on copyright infringement notices that accuse users of downloading music and order them to pay large sums of music or face punishing lawsuits.
After years of missteps, blunders and disasters in which Youtube users have been censored through spurious copyright claims or had their accounts deleted altogether, Google has announced an amazing, user-friendly new initiative though which it will fund the legal defense of Youtube creators who are censored by bad-faith copyright infringement claims.
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