[sawyer]

Isn't this exactly how ReDigi operates? Is it different if the first sale is to a consumer rather than a company?

My reading was that ReDigi facilitates the "sale" of a song form one user to another by switching a DRM bit. Couldn't Zevida have done the same thing? Transfer ownership of the file to the user before pressing play on the dvd player?

[danielweber]

It's not "exactly" how ReDigi operates, since there is a distinction that matters about where the "performance" happens. (And that distinction matters because Cablevision, which is what allows you to offer the home-DVR as a cloud-DVR, also said that the cloud-DVR was okay because of the fact that there was a copy for each customer.) EDIT I'm not so sure about that distinction now, but there are other differences, like Zevida actually having physical media.

Nor has ReDigi been found to be legal, unless the article failed to mention the resolution of the legal action against it.