December 10, 2008 11:30 AM PST

Start-up to help people sell unwanted MP3s

by Greg Sandoval
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This blog was updated first at 12:30 p.m. PST with some reader feedback and then at 1:40 p.m. PST to include an interview with Bopaboo's CEO.

"Stop illegally sharing, and start legally selling" is the tagline for a start-up that wants to enable music owners to sell their unwanted MP3s.

Ernesto at the blog TorrentFreak has a story about Bopaboo, which has created a digital marketplace where users operate mini download stores.

Bopaboo buyers can search for music in all the usual ways, and the site offers a seller rating to help shoppers learn a merchant's reputation. Sellers register and then are given an MP3 store, where they can upload the music they want to sell. No DRM-wrapped music is allowed, so iTunes owners like me are blocked from selling.

According to TorrentFreak, there is no limit on the number of songs that can be offered. Sellers select their own prices but, of course, must cut Bopaboo a percentage of sales.

This was an idea bound to emerge out of the craze over songs stripped of digital rights management software. People have traded DVDs, mixed tapes, and albums for decades.

Bopaboo says the site is legal, and it sounds like it should be. Don't people own their MP3s? We'll see.

UPDATE: 12:30 p.m. PT: Several of you readers have pointed out that it's going to be tough, if not impossible, to prevent people from reselling songs over and over. This sounds like a fight in the making with the music industry. I've got a few calls in, so I'll further update this post with any objections from the Recording Industry Association of America.

UPDATE: 1:40 p.m. PT: Okay, here's the juice from Bopaboo CEO Alex Meshkin, a 28-year-old who didn't go to college, doesn't know programming but once ran Toyota's Nascar team. Yes, Nascar team. He added that Bopaboo is a Washington D.C.-based company founded a year ago.

I put the most important question to him first.

Q: Why don't you think the recording industry is going to sue you into oblivion?
Meshkin: Obviously, MP3s are very easy to duplicate...It's very difficult to tell the difference between a so-called new copy and a so-called old copy...I can buy a CD and I can rip it and that behavior has basically been endorsed by the music industry. I can resell that CD on Amazon. The industry doesn't have a way to monetize physical goods being traded on the secondary market. The first-sale doctrine protects that right. In the physical world consumers have the right to resell their property and copyright owners can't do anything about that."

Okay, but there's no way that the four largest music labels are going to sit back and let you enable people to sell multiple copies of the same song. Isn't that what people will be able to do using your digital marketplace?
Meshkin: We have the technology in place to prevent you from selling a song more than one time...We take a digital fingerprint through every upload that prevents a user from uploading to our service a track more than one time. Actually we've come up with an algorithm, which is beyond what even (digital filtering company) Gracenote does with song identification.

Have you spoken to the big recording companies or the RIAA?
Talks have sped up...I will be in New York later this week for meetings. The talks so far have been positive and the labels are inclined to look at alternative business models to monetize.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 2 pages (54 Comments)
by JoyceNgo-218335993631273378369 December 10, 2008 11:41 AM PST
In this case I'm not sure whether it's legal or illegal...

I mean if you already bought the mp3 and is reselling it, I'm not sure if I see a problem here. I sell my games and CDs to people, they are not copies or anything. But in a way I need to see some defense on both sides.. because I'm not sure..
Reply to this comment
by techman21 December 10, 2008 12:03 PM PST
Regarding CD's and disc-based software: you can't be sure it hasn't been copied, but you can be sure the original owner no longer has an original disc.
by edmundh December 10, 2008 11:52 AM PST
It seems to me that when you buy a DRM-free mp3, you are buy the right to listen to it without restrictions, but you are not buying the copyright, which you would need to distribute, or resell, the mp3. This can not be legal.
Reply to this comment
by Renegade Knight December 11, 2008 7:18 AM PST
Yes and no.
When you buy a CD you are also not buying the copyright. You are actually buyign the right to enjoy the music on the media. You also have the right to sell that media. MP3 is no different. Amazon makes it clear that you can't resell either thorugh the TOS or Lisence. Really that means Amazon isn't selling you the media. They are renting it.

I'd rather purchase it. I like Amazon but I'm going to abandon ship when someone is willing to actually SELL me the mp3 os it's mine.
by Perry_Clease December 10, 2008 11:55 AM PST
"
by JoyceNgo December 10, 2008 11:41 AM PST
In this case I'm not sure whether it's legal or illegal..."

From what I read on most the agreements, if you "transfer the license" of an MP3 then you are supposed to delete the file from your hard drives.
Reply to this comment
by banishedheart December 13, 2008 2:20 PM PST
What agreement is *THAT*? I'd like to read such an agreement
by Blacksheep1982 December 10, 2008 11:55 AM PST
Honestly, nothing is stopping me from keeping the MP3 after it is sold, so I could sell the same one indefinitely even though I do not hold the copyright. Even if it bars you from selling the same song again, I still don't own the copyright.

I think this site is a good idea honestly, but with the copyright Nazi's this site will be shut down in a month or less.
Reply to this comment
by Hernys December 10, 2008 7:39 PM PST
How can it be a good idea? It connects people wanting to buy something with people selling copies that cannot be possibly identified as legal or ilegal. Thus, the vast majority are going to be ilegal. Actually it IS a great deal for scammers: subscribe and sell millions of ilegal songs.
If I wanted to have an ilegal MP3 I'd just download it. Paying for goods that might (and most probably are) as ilegal and as good as those freely (and ilegaly) downloaded just makes no sense.
So it is a new service that's not good for the buyers (which will be few), only favors crooks and is probably ilegal in itself. And that's good?
by December 11, 2008 5:00 PM PST
Copyright Nazis? What rock did you crawl out from under? Artists and labels have the right to sell their products. You people (web pirates) have no morals and no brains. Don't you get it, you can't have it both ways, if music is going to be free, then nobody but idiots will make music. I suppose you all don't even realize you have already ruined music quality with compression, now you want to bury the industry by refusing to pay. Sooner or later you will pay. I hope it's sooner. The key to an open internet is reasonable behaviour and accountability. It's not a free for all anarchy.
The younger generation has some lessons to learn. Grow up and stop stealing and then blaming the victim.
by techman21 December 10, 2008 11:59 AM PST
I see a few major problems with this:
1) They can't be sure an mp3 file is original,
2) They can't be sure an mp3 file hasn't been copied,
3) There's no way to guarantee that you've deleted your copy of the file after selling it. Just by uploading it, you're making a copy.
4) There's no way to prevent you from selling the same file multiple times. If they do any kind of hashing to identify it, you can just add some silence to the end or clip it somewhere to change the value.
Reply to this comment
by RoadKill87 December 10, 2008 12:14 PM PST
Your right they can't be sure of that.

Then again the RIAA can't do anything about that, they would have to know your doing it because first off they can't just spy on you for assuming you stole the music or are not deleting it and what not. Your innocent till proven guilty.

So yes essentially you can copy it then sell it but how would anyone know? Impossible to find out.
by humanssssss December 10, 2008 12:36 PM PST
5) You can't be sure the world will collapse tomorrow.
6) You can't be sure your mom will have cancer.

There's a lot of you can't. People shouldn't have to be questioned of their integrity. Just like you wouldn't question a company's integrity when you click yes on an EULA.
by umbrae December 10, 2008 12:38 PM PST
"So yes essentially you can copy it then sell it but how would anyone know? Impossible to find out."

The RIAA may not be able to find out, but under current laws that is the main reason the site will have to cease operations.

Copyrights are just bad...
by JoshMiller79 December 10, 2008 12:06 PM PST
This sounds like a good idea but what's to keep people from selling copies of the music?
Reply to this comment
by Fochsenhirt December 10, 2008 12:19 PM PST
Here's the section from their Terms of Use dealing with selling MP3s:

Selling Used Published Items. The bopaboo Service makes it possible for You to sell Used Published Items owned by You. If You sell any Used Published Item, you represent and warrant to the purchaser that your copy of the Used Published Item is a digital copy of the original work that You purchased directly from the applicable publisher or agent of the publisher or from another person who was authorized to sell that copy to You and that You have not previously sold any copies of such work. You further represent and warrant to the purchaser and to bopaboo that, upon the completion of such sale, You will delete any remaining copies of the Used Published Item that may exist in your possession, custody or control. You agree that any transaction you make is final and you agree to indemnify and defend bopaboo against any and all claims arising out of any transaction in which you are the seller as provided in Section 10 ("Indemnification") of this Agreement.

No thanks.
Reply to this comment
by slacker15 December 12, 2008 8:31 AM PST
HA! "You will delete any remaining copies of the Used Published Item that may exist in your possession, custody or control." Ok, Here's the newest Barry Manilow song for $1, let me just delete that off my computer.

So this company is going to let me buy a CD, rip it, sell off all the tracks multiple times, (come on, change the song title by a letter or two or rip it at a different bit rate, lets see this "algorithm" at work) and make a huge profit? God bless America!
by gerrrg December 10, 2008 12:20 PM PST
That is the most nonsensical thing ever.

1. You're being granted a limited right (any media) to use for your personal entertainment, not to use then resell.
2. Without DRM, there is no way for a company to guarantee that you're not selling on the sly (keeping the MP3 and selling a copy). You could even rip your own CDs then resell them. The labels wouldn't like that, and bopaboo would get into trouble for facilitating the pirating of music.
3. In order to serve as a clearinghouse for DRM, bopaboo would have to already have signed agreements with copyright holders (RIAA). Same thing goes when you resell your software, if you buy used software, you actually have to clear it with the company that owns the rights to the software. I seriously doubt the RIAA is going to allow bopaboo to trade MP3s without DRM and without clearinghouse agreements. What, you think the labels are going to allow a resell without getting their income?
4. DRM-free means that people are already trading with each other, anyway. Somewhere on the internet, someone has their DRM-free MP3s posted. Somewhere in the world, millions of kids are trading each others' MP3s. There is no added value to bopaboo's venture.
5. MP3s are an inexpensive commodity that is only going to get cheaper.

Bopaboo is no different than the early Napster, except that Bopaboo earns a little off the top of each MP3 traded. They're going down.
Reply to this comment
by humanssssss December 10, 2008 12:39 PM PST
You can't tell if the EULA is legal. What's your point?

I see that when people buy a digital good, they have the right to sell the digital good. Otherwise, the digital good will have no value after its use. This is bad. It means the economy can shrink faster because the digital asset will be driven to ZERO in very little time.
by umbrae December 10, 2008 12:35 PM PST
This is not legal as you do not own media. All media is licensed based. This site will be brought down as soon as the media companies contact their lawyers.
Reply to this comment
by DrtyDogg December 11, 2008 3:13 AM PST
People have done it for years with CDs. And the same is true. You own the media, but the content on it you license.
by banishedheart December 13, 2008 2:34 PM PST
"People have done it for years with CDs. And the same is true. You own the media, but the content on it you license. "

This is not true. You show me where I signed a license when I bought a physical CD from Wal Mart..
by smilin:) December 10, 2008 12:37 PM PST
Oh this has got to be the funniest business model I've ever seen. It's like 'evil genius' except in a retarded drool on the chin sort of way.

How on earth would they prevent the next millionaire being born by reselling a single mp3 over and over. I can just see the users now... "I swear I've got a whole stack of the CDs right here!...swear!"

I think the goal here it to rake a profit on an imaginary sale then run for the door before the RIAA arrives.
Reply to this comment
by Eddie-c December 10, 2008 12:52 PM PST
Did a 3yr old come up with that company name? Sheesh
Reply to this comment
by dmksaved December 10, 2008 1:07 PM PST
who has mp3's they don't listen too ?
I guess those people that have Terabytes of mp3's they downloaded or got from friends and don't care to listen to the kinda of music they hate . This service is perfect for the early napster stealers, and the kazza fans.
I guess I could sell an mp3 , delete it from my hard drive , go download it again , or get another one from a friend off there ipod or there original CD , then sell it . This is service is like going to the store and buying a CD , then I have the right to make mp3's of it and sell it outside the store for my own price . this service will get shutdown quick.
Reply to this comment
by dissent3125 December 10, 2008 1:36 PM PST
What sucker would actually buy music off this thing. This is just as illegal as downloading music from others for free.
Reply to this comment
by banishedheart December 13, 2008 2:38 PM PST
Well ... you got your downlaod ... and cheaper. And you have established bona fide intent. Why is that a sucker?
by Renegade Knight January 2, 2009 9:24 AM PST
Funny thing. I bought two of one song. Not sure if I clicked "purchase" twice or what. I don't need two of the one song. Being able to sell the extra or trade it for another song would be nice.

For that to happen we need an aftermarket. All the better if it's an aftermarket that's does a bit to verify the legitimacy of the content being traded and sold.
by gkflyboy December 10, 2008 1:53 PM PST
My whole MP3 library is for sale!

I'm not using any of the songs anymore - really! ;)

LOL....
Reply to this comment
by billybob75 December 10, 2008 1:57 PM PST
This guy will be sued and shut down within a week.
Reply to this comment
by AaronB.C. December 10, 2008 2:08 PM PST
Why is it that in most of these comments, the poster speaks in the first person of breaking the law by selling MP3's multiple times, then shifts the blame to Bopaboo? Seems to me like accusing the knife of murder, and letting the wielder walk free.
Reply to this comment
by smilin:) December 10, 2008 3:39 PM PST
Don't be so obtuse.

Nobody is saying let the wielder walk free. Both parties would be guilty.

Bopaboo is essentially setting up a store to fence stolen goods then make a profit. Sure, their customers "swear" that the goods aren't stolen but they have no way to be sure and the probability is very high.
by humanssssss December 10, 2008 6:55 PM PST
@smilin

"they have no way to be sure and the probability is very high." This is the same mentality when people say the earth is at the center of the universe. People like smilin doesn't understand that there are people who sell MP3 and destroy the MP3 on their machine. And perhaps the market on this site is transacted in that fashion. People like smilin make accusation based on their experience, which of course, shows his/her guilt.

When the RIAA goes after people for copyright infringement, does the RIAA shows you that they have the right to the song, that they have contract to prove, that they don't forge the document of proof ... etc. The sword has two sides. The problem with most people is that they are trained to only look at one side. Like how they are trained to rely most on their vision than all their other senses.

I'm glad I'm one of the few liberals on earth who see things differently.
by lifeinhd December 10, 2008 2:47 PM PST
What prevents you from selling an MP3 you never bought in the first place? Let's say you downloaded a track from Limewire, what's to stop you from selling it? And even if they did find a way to prevent you from selling a song multiple times, why can't you just download the song illegally again?
Reply to this comment
by pase121 December 13, 2008 12:41 PM PST
lifeinhd is right, I dont see was to stop someone from going to limwire or mininova and just download all the mp3's they want and then selling them on this service. Forget selling multiple copies of the same mp3 just sell a million new mp3's you've download for free from the internet at large. I predict this company will be a forgotten memory within six months.
by Renegade Knight January 2, 2009 9:26 AM PST
What does this have to do with anything? What prevents you from selling an Ipod you never bought in the first place or anything else? The larger point is the right of first sale. Not the right to sell stolen property which doensn't exist and isn't being created with this company.
by danstyme December 10, 2008 6:24 PM PST
WHO CARES <<<MOST OF YOU STOLE THE MUSIC YOU CANT MAKE MONEY ON <THATS WHY UR ALL PISSED !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!LOSER BUY THE MUSIC
Reply to this comment
by Zeph1 December 11, 2008 2:04 PM PST
You sound like the one who's pissed.

Calm down...

Trying to start an argument on the internet over something so trivial makes you seem like a loser.
by paulej December 10, 2008 6:42 PM PST
I would guess that somewhere in the music download service there is a license agreement. Isn't music licensed? And, I would bet that the license agreement could prevent the transfer of any rights under said license. Personally, I do not see any real value for most users when a song can be legally downloaded from Amazon's MP3 store for 99 cents. What is the point in selling it for 25 cents? I would expect most people would keep their music or throw it away, but it surprises me that people would want to keep it around for a few years and then sell it for a quarter. But, perhaps they do. It just seems like more effort than it is worth.
Reply to this comment
by humanssssss December 10, 2008 9:21 PM PST
I spend about $2,000 each year on music. I expect to get some return, even if it's 25% of what I originally paid for. 0.25 * 2,000 is $500. Where do you get this kind of money nowaday?
by Renegade Knight January 2, 2009 9:29 AM PST
You got it. Amazon isn't selling me the music. They are renting it. The TOS/EULA prefents my transfering ownership. Technically I can't even buy a digital album and give it to my buddy for his birthday without breaking the TOS/EULA. This tells me that digital as it is now is broken. Either the prices have to drop to reflect the utter lack of first sale rights, or the media ownership needs to be permanent so I can give my old junk to my buddy.
by farker1 December 11, 2008 1:57 AM PST
Who the hell is actually going to buy a "used" MP3? And what does that term mean anyway? The effort spent searching this hotch-potch collection of music coupled with the cost of buying what you're lucky enough to find will be extremely unattractive in the face of any P2P network, where the selection is breathtaking and the fees non-existent.
Reply to this comment
by monodesierto December 11, 2008 3:56 PM PST
Well, if it's legal and can be had cheaper than from itunes or amazon, then sure there would be a market for this for those who choose to keep their collections RIAA-approved, er, -safe.
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