UMG claimed that the CDs were their property, and Augusto's sales constituted copyright infringement.

Augusto deceives potential eBay buyers by speciously claiming that he has the right, under U.S. copyright law, to sell the "Promo CDs" under the "first sale doctrine" embodied in 17 U.S.C. § 109.

Augusto admits that the limitation on a copyright holder's distribution right set forth in 17 U.S.C.

[3]Augusto argued that he owned title to the CD copies he sold under three theories.

The court supported both 1 and 2 but rejected 3, and thus ruled that UMG transferred title of the CDs to the original recipients.