Virtual Garage Sales for Used Digital Music Are Barred by Court

Purchasers of digital music files from services such as Apple Inc.’s iTunes cannot resell them through a virtual marketplace, an appeals court said in a ruling that recalls an era dominated by vinyl records and CDs before streaming services reshaped the music industry.

The decision, issued Wednesday, affirms a district court’s ruling that such sales infringe the exclusive rights of copyright holders. A virtual marketplace designed to resell digital music files as if they were secondhand albums runs afoul of copyright law, the U.S. Court of Appeals for the Second Circuit ruled in a victory for record labels.