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What would you pay for used MP3s and e-books?

By | February 25, 2013, 12:37 PM PST

Unlike paperback novels and wood furniture, digital objects never lose their good-as-new luster. Now, companies like Amazon and ReDigi are making it easier for us to hold virtual yard sales. New Scientist reports.

It’s been tricky setting up a second-hand market for digital purchases because, well, did we actually own them in the first place? But just last year, the European Union ruled that software vendors cannot stop customers from reselling their products.

Now there’s an Amazon patent for a system to support reselling digital goods. Customers keep their purchases — such as e-books or music — in a personal data store in the cloud only they can access. They resell previous purchases by passing access rights to another person, and once the transaction is complete, the seller loses access to the content.

Boston-based ReDigi has been running a resale market since 2011. Users upload items to ReDigi’s servers to be bought and downloaded by someone else. A song that costs 99 cents new on iTunes, for example, might cost only 49 cents.

Digital items on ReDigi are cheaper because they are one-offs. If your hard drive crashes and you lose your iTunes collection you can download it again. But you can only download an item from ReDigi once – there is no other copy. That is the trade-off that makes a second-hand digital market work: the risk justifies the price.

Of course, these systems have to make sure the files aren’t duplicated in the transaction. That means deleting any copies the seller may have lying around on hard drives, e-book readers, and other cloud services — since that would violate copyright.

It could be good for business too if the original vendors were to support resale and take a cut of the resell price. Microsoft’s new Xbox, for example, isn’t expected to work with second-hand games. But with Amazon’s weight behind this, “the industry is waking up,” says ReDigi founder John Ossenmacher.

[New Scientist]

Image by Eastlaketimes via Flickr

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Janet Fang

About Janet Fang

Janet Fang is a contributing editor for SmartPlanet.

Janet Fang

Janet Fang
Contributing Editor, Healthcare

Janet Fang has written for Nature, Discover and the Point Reyes Light. She is currently a lab technician at Lamont-Doherty Earth Observatory. She holds degrees from the University of California, Berkeley and Columbia University. She is based in New York.

Follow her on Twitter.

Janet Fang

Janet Fang

Janet does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
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Looking forward to this
I don't mind buying previously owned media. It could be that something hot & new just isn't worth the new price to me and I am willing to wait until a used copy becomes available.

The tough part is trust and honesty. I can't speak for everyone, but if I loan something to someone, I expect it back, in whole form. And if I sell something, I give it in whole form without the ability to psuedo-magically recreate it.
Posted by Jim Johnson
26th Feb
0 Votes
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Where does this leave Amazon Kindle e-books?
This ruling dates from the middle of last year, but so far as I can see nothing's changed in relation to Amazon's e-books for the Kindle, or am I missing something?
Posted by Brian Luff
26th Feb
0 Votes
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too many snags for book owners, and why profits to the big boys? for what?
problems:
1.) stored in the cloud. where amazon or whomever manages that could just decide, "oh. you don't own that", and erase it. or, under certain circumstances, information about what you have there could be sold to third parties. The cloud is not secure (for you) or private.

2.) what is this drivel about someone else taking a cut of the sale? That is absolutely preposterous.the book owner already paid for the book, why should they give up value when selling it?

solutions:
1. Buy only e-books than can be stored locally and backed up offline to one's personal data vault.
2. When you want to sell the e-book, offer it, and after burning it to DVD or CD and shipping it, or FTP-ing it to the new buyer, and the new buyer confirming their acceptance, you yourself erase the local backup. That is the honest way to do it. It is foolish to allow a third party to make money on it for no reason, and it is weak to accept their insulting schemes which on the face of it assume all customers are thieves.
~`~
Any time you unfortunately buy one of those nebulously coded, non-backup-able e-books, always find a way to back it up, even if just by image, so your ownership rights can not be violated later when some tinpot decides you don't own it and makes files start disappearing from your private and secure cloud.

I may be cynical and suspicious, but I still have all my stuff.
Posted by opcom
26th Feb
0 Votes
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Half price plus a processing fee
For an e-book, I would happily pay Amazon a $1 to transfer the rights of a book I have purchased. I want to be able to give a good book to my dad, or get one from him. If Amazon will manage the process and then keep the book in my account they should get a small fee. If I want to sell the book, there should be an open market, just like there is in physical books. I may have paid $17 for a new release but if the price has droped then I can only sell it at a discount to the current retail. The market will even out as book holder decide it is better to keep the book in an e-library rather than only get a few $ for it.

In the case of a sale, if there is a small fee being added based on the price the I am good with that especially if there is a profit sharign model between Amazon and the writer / publisher.

Say give the book - fee 1$
Sell the book (auction or bid/ask) - 50 cents + 15% with a min fee of $1.
That way if a book was sold for under 3.33, then the cost to handle the transfer would still be the same as givign the book away. Amything more would have $1 for amazon to cover there system cost (and some profit), and 15% of any price over the 3.33 that can be shared between the writer, publisher, and amazon.

Of course this is all coming about because Amazon et al. are becoming aware that the geni is out of the bottle and that if they make it difficult to share, then poeple will just pirate the e-books,
This is the same reason that iTune does not DMR there music any more.

Will be nice once this gets going. I just hope they do not limit just to the USA for the next 5 years. At least I can finaly get a Paper white up here in the Great White North.
Posted by CharlesG1970
26th Feb
+3 Votes
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And the publisher deserves a cut why?
When I sell my used Caddy this summer, I am certainly not planning on sending a check to GM.
Posted by Tranman123
26th Feb
0 Votes
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because it's a service
If you trade in your Caddy back to your dealer, and then they sell it to someone else, they're going to make money off it (at least they'll intend to). And just like your Caddy's trade in, if you don't like the service or its terms you don't have to use it.
Posted by frylock
28th Feb
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