UMG Recordings vs. Augusto

UMG Recordings made unsolicited shipment of music CDs to certain music critics and radio programmers. The CD's were marked 'promotional' and 'not for sale.' Augusto obtained several copies of these CDs and sold them on eBay. UMG sued Augusto for copyright infringement. Ninth Circuit held: promotional distribution of CDs constituted a 'first sale' under § 109(a) of the Copyright Act, and Augusto's sales were not copyright infringement.
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