Buy 10 songs digital, can I resell 9?

[dommike67]

Ref.: Content Licensing

We are a new corporation and developing a Mobile Phone Content Website for the Latin American markets.

Currently we are negotiating with the major record labels to acquire license to download ring tones (max. 30 secs.). The record labels are responding very slow and demanding very high rates about USD 0,60 per download. Also high deposits and one time fees (USD 25.00 per song)

This is the reason why ring tones right now are sold up to USD 2,50.
Our opinion is why somebody will pay USD 2,50 for a 30 sec. song, when he can buy the entire song at amazon.com for USD 0,89.

Now we are thinking in a different model:

Buy 40 digital copies of an entire song (about 4 minutes) at amazon.com, part this copy in 4 parts and resell it 156 (39 x 4) times as a ring tone. This way our costs would be only US 0,225.

This would violate the TOS of amazon, but what about the Right of First Sale?
Only one copy stays on the Digital medium and if you have bought 40 digital songs it should be possible to sell the 39 copies that are bought legally.

How about slicing the song apart? Is that permitted?
We are using only half of the song (4 times 30 sec= 2 min, the song is about 4 minutes)


Sincerely

Michael Leissler
General Manager
Portales Multi Movil Media

You should probably get a formal opinion from counsel but i am pretty sure after reviewing your details they will tell you that that is not compliant with copyright law.

Nice creative try though.