Citigroup, Inc.’s Capitol Records was denied a preliminary injunction against ReDigi in a decision rendered earlier today.
The preliminary injunction was denied by U.S. District Judge Richard Sullivan, stating that Capitol failed to show proof of irreparable harm. Judge Sullivan also dismissed ReDigi’s motion to dismiss the case, finding the motion premature.
With ReDigi – a website that “recycles” digital music files – having previously come under the scrutiny of record labels for copyright infringement claims, Capitol’s lawsuit is no surprise.
As preliminary injunctions temporarily restrict a party from undertaking a certain action during the course of litigation, today’s decision is just a stepping stone in what’s sure to be a closely-watched case.