It is starting to look like the MP3 resale service ReDigi will be shut down because it can’t afford to fight EMI’s mighty briefs.
Lawyers working for the digital start-up filed a motion to withdraw from the case.
According to CMU, ReDigi had an idea that music fans should be allowed to sell their unwanted MP3s on to third parties.
The company verifies the source of the digital file being sold and ensures the original is deleted from the seller’s computer after sale.
Big Content, which did not really want people to resell CDs and records, argue that the ‘first sale doctrine’ does not apply, because when a CD is exchanged no actual copying takes place.
EMI’s case looked weak when its lawyers pushed for a summary judgement in February, the judge hearing the case ruled that the debate was too complicated for a judgement to be made without a full trial.
Judge Richard Sullivan said that it was a “fascinating issue” that “raises a lot of technological and statutory” points, which means he is looking forward to a nice long messy trial.
ReDigi attorney Ray Beckerman filed a motion to exit the case and apparently it is because he is owed money.
Of course this would not be the first time that a startup has been killed off by big companies with bigger legal budgets, it is highly annoying as the case could have make a few talking points such as cloud-storage and file-transfer a lot clearer.