ReDigi took a gamble that it could resell legally purchased song downloads, much as you would that one-hit wonder CD you bought in high school. Unfortunately for ReDigi, the odds weren't ultimately in its favor: a Southern District of New York court has shot down ReDigi's appeal against a Capitol Records lawsuit accusing it of copyright infringement. The court didn't accept ReDigi's view that first sale principles apply to strictly digital music, at least as its service implements the technology. While the startup tries to keep traders honest by making them delete originals after a resale, the process by its digital nature still involves making a copy of the track without Capitol's permission, according to the court. We'll have to wait to know what penalties ReDigi might pay, but there's enough legal precedent in the case that it's doubtful others will follow in the service's experimental footsteps.