Company News | Reuters.com
Backed with $9 million in funding by Bain Capital and Ignition Partners, La La Media works like an online music co-op by enabling members to trade physical CDs they own for physical CDs they want.
La la founders argue that, unlike underground online file-sharing services, which have been sued for copyright infringement, La la is protected under an exception to the U.S. Copyright Act. They contend that the owner of a CD can transfer a legally acquired copy without permission or payment of additional royalties.
A member will pay $1 to La la for facilitating the trade on receipt of a disc from another member, plus a 49 cent shipping charge.
La la said it will set aside 20 percent of its trading revenue for recording artists.
Other Web sites, such as Peerflix and BarterBee, are also enabling consumers to swap used merchandise.
Peerflix allows members to legally trade DVDs, while BarterBee lets people swap between multiple media, such as DVDs, music and games.