eBay rehearses song auctions
Published: 15 Jul 2004 15:55 BST
Online auctioneer eBay has announced that it is allowing a select group of its customers to begin selling digital-music files over its Web site as part of a test to see if the company can successfully move into the download services market.
The company outlined the details of the 180-day pilot programme on a page posted to its corporate site. On that page, the company places an emphasis on its desire to foster sales of digital content while remaining within the bounds of copyright regulations. eBay did not specify how many individuals would be allowed to sell music in the test but said it will evaluate the programme after six months to determine whether a group of preapproved download vendors are adhering to copyright laws.
The surprise move by eBay into the promising digital-download sector follows this week's news that Apple Computer's market-leading iTunes service has surpassed100 million transactions. Other big-name vendors are also rushing to establish themselves in the space, including entertainment giant Sony, which, like Apple, offers both digital-content downloads and the devices used to play the files. The strategy represents a significant departure from eBay's historic policy of banning sales of digital-music files, a provision long included its listing policies.
The company said that individuals or companies approved to sell music through the new "Digital Downloads" site category will first have to prove to eBay that they have clear rights to market any content being made available for auction. Under the pilot, eBay said the actual transaction between buyer and seller will be executed on a Web page controlled by the download vendor, which will be co-branded by eBay. The company specifically stated that individuals buying music would not be allowed to re-list or resell any content they purchase through its auctions.
In light of the many schemes being hatched by hackers that use the eBay name illegally, the auctioneer is already warning its customers not to get sucked in by any unsolicited emails or pop-up ads offering music download auctions over its pages. The company also said it would test and monitor music vendors' transaction sites to ensure sellers are sufficiently protecting customer information.
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