EMI is set to sue MP3 marketplace ReDigi over copyright infringment.
ReDigi, which is based in Massachusetts, describes itself as "the world's first used marketplace for digital music" and claims to operate in the same way a second hand record store does, buying the unwanted MP3s of users and selling them on for a slight profit. MP3s on the site generally cost around 50p, which is around 30p cheaper than on iTunes.
EMI's lawsuit alleges that in the act of transferring files from a seller's computer to ReDigi's servers, multiple copies of an MP3 are made, which violates copyright law.
A spokesperson for ReDigi has described the lawsuit as "meritless" and told Billboard.biz that there is no copying involved in any of their transactions.
The company's CEO John Ossenmacher described how they received MP3s as "an instantaneous, simultaneous transaction" and added: "When our transaction goes from one person to another, there's no copying involved in that transaction". ReDigi have said that they will fight the lawsuit "vigorously".
ReDigi had previously received a cease and desist letter from the Recording Industry Association of America, which questioned the legality of how they received MP3s.
Thanks for the report to NME.com.