By Scott Hervey 

Have you ever been into a used record store (remember those) and picked up a used CD that had the following language either on the CD case or on the CD itself:

FOR PROMOTIONAL USE ONLY

This CD is the property of the record company and is licensed to the intended recipient for personal use only. Acceptance of this CD shall constitute an agreement to comply with the terms of the license. Resale or transfer of possession is not allowed and may be punishable under federal and state laws.

Have you ever wondered how on earth can the record label control the sale of these CDs. (An obvious question given the fact that the CD in question is for sale in a used record store.) According to a recent federal court case, they cant.Continue Reading Not Just For Promotional Use