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Subject: Re: Is Eugene Nalimov aware of this eBay auction?-legal

Author: Alastair Scott

Date: 01:47:14 02/16/03

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On February 15, 2003 at 20:44:28, mike schoonover wrote:

>well 12 cds for 34.95 + 4.xx s &h.
>roughly 40 bucks.figure out the amount for materials,
>and production.he may just be charging for putting the tbs
>on cds for you.not actually sell egtbs.
>cant he do this with any item freely distributed?
>have'nt a clue.
>mike

Time for a legal opinion (I assume US and UK law are similar) :)

It all depends on the licence. It seems that the owner (Eugene Nalimov) has a
licence whereby his content may be freely distributed but any distribution of it
for profit by a third party is illegal.

Thus a third party vendor could only charge the cost of the CD-Rs plus
'reasonable costs' (in practice, office costs such as paper, labels, padded
envelope, stamps, printer ink used, electricity used). Whether labour could be
factored into this depends on the type of business doing the copying; if it's
one person in a back bedroom without any sort of incorporated structure or
similar, as is probably the case, the labour is considered of zero value. In any
case 12 CD-Rs could, with a modern burner, be copied in an hour or less.

The cost of a CD-R nowadays can be less than 10 pence a CD-R blank so ~£23 for
12 CDs plus shipping, in this instance, is certainly 'distribution for profit'
as it's probably about 10 times the actual cost of distribution!

Alastair



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