Originally Posted by guiJY
That's like saying "Because there is a chance of you photocopying our book and retaining it, we prohibit you from reselling it." In reality the product being sold is actually the copyright of the intellectual property, and this should be able to be transferred just as someone who purchased a book should be allowed to sell the rights of reading such book to another person via giving them the book.
On the other hand, this company is not violating the law. In no way is it actively infringing or helping to infringe copyright. This is comparable to a publisher suing a bookshop for people selling second hand books after they make a copy of it without seeking permission from the author. EMI just wants more revenue.
Why do you think libraries are threatened with extinction? The same argument EMI are using to take this company to court is being used by publishing houses to penalise libraries, especially now there's a lifetime plus 75 years rule in the US. This assault, however, isn't restricted to the US, it also applies to Europe, though courts are making it harder to shut libraries down, as that would require the suing of the government itself (I'm unaware of laws pertaining to libraries in the US).