The first sale exeption survived. Copyright holders simply can't control distribution of a copy of the work after the sale. 17 USC sec 109. The digital protection system failed. I think that's where we are today. You can stlll make back up copies and sell, give away or lend your disc. See my prior posts; check out the book "digital copyright" by Jessical Litman. The book discusses these issues in a pretty understandable way.
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I have seen your prior posts, I have read the both the fair use and the first sale sections of copyright law, however, I have not read Litman.
That said, I still contend that this sequence:
buy 'authorized' copy (referred to as 'particular copy' in the CLUSA) --> make your own bitperfect digital copy -->sell 'authorized' copy
is simply not considered in the current law, and is only legal for that reason. It is legal in a 'loophole' IMO, as the rest of the law is firmly against unauthorized copy-for-profit. The fact that 'phonorecords' are still cited in the law is an indicatior of how out of date it is. DMCA circa 1996 didn't advance it much. The means of audibly indistinguishable digital copying have exploded since then.
Even the archaic current law certainly does
attempt to control things like rent/lease/lend-for profit of the 'authorized' copy, so it does try to control distribution of a copy of a work after sale. Whether it is *able* do so, in the real world, is another story.
NB. I am talking about a particular situation...where the consumer
buys a copy of a recording, duplicates it, then *
sells* it -- not gives it away, not distributes it 'for free' (e.g. torrents) -- but actually attempts to recoup all or part of the original cost, in effect leaving him with a 'free' or 'discount' copy.
The other situations -- giving away physical copies, or file sharing -- have their own ramifications of course. As does obtaining a free copy without having ever bought one in the first place...(i.e., being on the receiving end). But most discussion of copyright law seem to be about the latter cases, not the particular case I am talking about.