Universal: You don't own those promotional CDs we gave youIs throwing a record label's promo CD in the trash an "unauthorized distribution" of the music? According to Universal, the answer is yes. The claim surfaced as part of a legal case against an eBay reseller who offered Universal promo discs for sale in violation of the "not for resale" label printed on each disc. While the case sounds almost farcical, it raises an important question: can Universal and other labels in fact control the distribution of a product once they have sent it to others, or does the US "first sale" doctrine give people the right to do as they like with the promo discs?
[...]
At issue here is who owns the promo CDs. Universal argues strenuously that it never transferred ownership when it sent them out and that the discs are merely "licensed" to those who receive them. Each disc includes text that makes clear that "this CD is the property of the record company and is licensed to the intended recipient for personal use only." According to Universal, the label could recall the discs at any time (though it has never done so). In fact, even giving the discs away or tossing them in the trash constitute "unauthorized distributions."
WTF?
It all comes down to: Someone sends you some advertisement, put's a sticker on it saying you can't redistribute, forbidding you to through away whatever you received. America: Prepare! Stock up in shelves, you're not allowed to discard SPAM anymore.