ReDigi Issues Statement on Amazon's Patent For The Resale of "Used" Digital
CAMBRIDGE, Mass., Feb. 6, 2013
CAMBRIDGE, Mass., Feb. 6, 2013 /PRNewswire/ --ReDigi™ (www.redigi.com), the
world's largest online marketplace for the resale of pre-owned digital media,
issues the following statement regarding Amazon's recently issued patent for
an electronic marketplace for used digital objects.
News that Amazon has received a patent for the resale of digital goods has
justifiably caused a stir in the technology and publishing press. ReDigi
believes the Amazon patent is further proof that the secondary market is the
future of the digital space and that there is no turning back. ReDigi is at
the forefront of this trend, having launched the ReDigi Marketplace in 2011
with technology and a business model that are significantly different from the
marketplace described in Amazon's patent. The differences will be important
as the marketplace develops, not just to the marketplace providers, but to
artists, authors and copyright holders.
What did Amazon Patent?
As ReDigi understands Amazon's patent, it is for a marketplace that employs a
seller to buyer "copy and delete" mechanism, in which a user sells a "copy" of
a digital good to another user while both the buyer and seller simultaneously
own the copy (even if only for an instant in time), and then supposedly the
seller's copy is subsequently "deleted." ReDigi takes no position on the
legality of this technique under copyright law, but simply notes that it has
been central to the music and publishing industries' skepticism and opposition
to a "used" digital marketplace, and that the ReDigi Marketplace does not use
How is ReDigi's technology and intellectual property different from the "used"
marketplace Amazon intends to create, as described by their patent?
ReDigi's advanced technology employs a "Verification Engine" and "Atomic
Transaction", resulting in a TRANSFER ONLY mechanism. This means that all
digital goods are first verified to ensure that they are legally eligible for
resale. Once verified, ReDigi's technology transfers the "original" good from
the user's computer to ReDigi's Cloud (Marketplace). With ReDigi's method,
only the "original" good is instantaneously/atomically transferred from seller
to buyer without any copies. ReDigi then assists the seller with an
anti-virus like software application that monitors the seller's computer and
synced devices to ensure that any personal-use copies of the sold good are
Why should artists, authors and copyright holders be concerned by Amazon's
approach used digital market?
To our knowledge Amazon has NEVER compensated artists, authors or copyright
holders for the secondary sale of their goods, and they have sold billions of
dollars worth of them. There is nothing in the Amazon patent that addresses
In contrast, the ReDigi model frees up billions of dollars of locked up
wealth. It enables the participation of all parties--from consumer to
artist/author to copyright holder--in the profit chain. The nexus between the
physical and digital marketplace can be defined by the emergence of a true
secondary marketplace. ReDigi has managed to create just that, not only by
solving the riddle of "original" content transfer, but by taking an
enlightened step forward in bringing the artists and copyright holders back
into the revenue stream.
ReDigi™ is the world's first online marketplace for the resale of pre-owned
digital media, and a one-stop-shop that allows users to store, stream, buy and
sell legally acquired digital media. ReDigi'stechnology is covered by
numerous patent applications and functions to insure the rights of consumers,
artists, authors and copyright holders are protected in a far superior way
than ever previously thought possible, and protects the integrity of the
process from those looking to misuse digital content. ReDigi is also the
first company in history to provide artists and authors a recurring revenue
stream by offering Artist/Author Syndication as part of the secondary
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