copyright
Why is it legal to give away for free a physical copy of copyrighted material that you bought, but not a digital copy?
<p>After posting <a href="https://law.stackexchange.com/questions/3488/is-it-legal-to-buy-second-hand-copyrighted-recordings/3514#3514">this question</a>, another one, more obvious came to mind.</p>

<p>If the "first sale doctrine" is a widespread law, and allows someone to give their whole collection of VHS or DVDs or vinyls for free, then why is this rule not applying when it comes to a digital copy?</p>

<p>If the first sale doctrine rule applied, then someone who legally purchased thousands of albums and movies digitally should be able to give these files for free to whoever they want.</p>

<p>A frequent distinction between the two situations is that usually, you buy the actual physical thing (DVD, VHS, CD, book, etc.), but for a purely digital asset, you may be only buying a restricted licence to the asset (on <a href="http://www.apple.com/legal/internet-services/itunes/uk/terms.html" rel="nofollow">iTunes</a>, for example).</p>

<p>In the case where you did buy the digital asset (not simply a restricted licence to it), another difference is that the transfer of a physical item does not implicate the reproduction right<sup>1</sup> that is given exclusively to copyright owners. However, transfer of a digital asset often does implicate that reproduction right. See <a href="https://cases.justia.com/federal/district-courts/new-york/nysdce/1:2012cv00095/390216/109/0.pdf?ts=1376363388" rel="nofollow">Capitol Records, LLC v. ReDigi Inc.</a>:</p>

<blockquote>
  <p>It is also undisputed that
  Capitol did not approve the reproduction or
  distribution of its copyrighted recordings on
  ReDigi’s website. Thus, if digital music files
  are “reproduce[d]” and “distribute[d]” on
  ReDigi’s website within the meaning of the
  Copyright Act, Capitol’s copyrights have
  been infringed.</p>
</blockquote>

<p>It is a different situation if you transfer the actual medium onto which you downloaded the digital content (<em>ibid.</em>):</p>

<blockquote>
  <p>Section 109(a) still
  protects a lawful owner’s sale of her
  “particular” phonorecord, be it a computer
  hard disk, iPod, or other memory device
  onto which the file was originally
  downloaded.</p>
</blockquote>

<h3>Notes</h3>

<p><sup>1. <a href="https://www.law.cornell.edu/uscode/text/17/106" rel="nofollow">17 USC §106 (1)</a>  "<em>the owner of copyright under this title has the exclusive rights to [...] reproduce the copyrighted work...</em>"</sup></p>

<p><sup>This answer assumes US jurisdiction, but Canada's Copyright Act is fairly similar to 17 USC and similar holdings have been made in Canada.</sup></p>

<p>The first sale doctrine only applies to materials you <strong>own</strong>. If you bought and own the digital copy you can give it away or sell it provided you delete your copy - remember copyright prohibits making copies.</p>

<p>However, many works, particularly digital works are licensed, not sold. If you have possession through a license then you do not own the item and the first sale doctrine does not apply.</p>
