A Judge of the US District Court, Southern District of New York ruled that reselling MP3s online is illegal. It violates copyright. The ruling says that courts have consistently held that the unauthorized duplication of digital music files over the internet infringes a copyright owner's exclusive right to reproduce. It also mentions that courts have not previously addressed the situation where the digital music file is being transferred unauthorized, but only one file exists before and after the transfer, whether or not that constitutes reproduction with the meaning of the Copyright Act.
Ubergizmo , Court Rules That Reselling MP3s Online Is Illegal, Court Rules That Reselling MP3s Online Is Illegal