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UMG Recordings vs Troy Augusto, 558 F. Supp. 2d 1055 - Dist. Court, CD. California, 2008 Cause Of Action PLAINTIFF: UMG owns the copyright to numerous songs and produces CDs containing those songs. Before a new CD is released for sale to the public, UMG often creates and distributes a "promotional CD" for purposes of promoting and advertising the release of the new CD. These CDs are labeled not for resale. DEFENDANT : obtained numerous promotion CDs from music shops and online auctions. Augusto then sold many of UMG's promotional CDs through online auctions on eBay, advertising these promotional CDs as rare collectibles not available in stores. UMG notified eBay through eBay's Verified Rights Owner program ("VeRO") of its belief that Augusto's auctioning of UMG promotional CDs infringed UMG's copyrights. This led eBay to temporarily stop Augusto's auctions and to suspend Augusto's eBay account. Eventually, eBay reinstated Augusto's account. When Augusto continued to sell UMG promotional CDs, UMG brought suit against Augusto for copyright infringement, alleging that UMG retained the exclusive right to distribute and sell the promotional CDs that Augusto sold through eBay (the "Promo CDs"). Augusto brought a counterclaim against UMG for violation of § 512(f) of the Digital Millennium Copyright Act (the "DMCA"), alleging that UMG knowingly misrepresented to eBay that Augusto's auctions infringed UMG's copyrights so that eBay would stop Augusto's auctions. Both parties moved for summary judgment on the claims. Court ruled for Augusto stating that the first sale doctrine protected his sale of the CDs and the court ruled for UMG dismissing the § 512(f) claims.