Universal Studios sent out a bunch of free promo CD's with a 'promotional use only' label to selected listeners. These CD's arrived completely free through the mail.
Troy Augusto, who decided to disregard that label and sell the disc on Ebay, is now fighting a lawsuit from Universal. The record company claims that the promotion use label identified the product as in part their property, and that they retained all rights of sale. Augusto claims that since the discs arrived in the mail with no action on his part, they were gifts and therefore his property.
The major significance is the challenges this case could pose for the 'first sale doctrine.' Universal wins, could a car manufacturer place a limit on the number of resales for the car? I could do a whole new post on that idea.
EFF has counter sued Universal on Augusto's behalf.
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