Redigi invites user to "sell their legally acquired digital music files, and buy used digital music from others at a fraction of the price currently available on itunes." Redigis sales take place entoerely in the digital domain. To sell music of Redigi's website, a user must first download Redigi's media manager to his or her computer. Once installed it analyzes the user;s computer to build a list of digital music files eligible for sale. A file is eligible only if it was purchased on itunes or from another redigi user: music downloaded from a CD or other file-sharing website is ineligible for sale. After this validation process, media manager continually runs on the user's computer and attached devises to ensure that the user has not retained the music that has been sold or uploaded for sale. However, media manager cannont detect copies stored in other locations. If a copy is detected, media manager prompts the user to delete the file: however the file is not detected automatically or involuntary. If a user chooses to sell his or her digital music file, his or her access to the file is terminated and transferred to the new owner at the time of purchase. Capitol records which owns a number of the recordings on sold on redigis website, brought a claim against redigi for direct Copyright infringement. Redigi defended on the grounds that its activities were permitted under the " first sale" doctrine

IS REDIGI CORRECT?