By purchasing a physical copy of a game, a purchaser (transferee) obtains all legal right to use, display at the location at which the physical copy is stored, rent, sell, or otherwise dispose of said physical copy according to court-upheld First Sale Doctrine. By inserting themselves as a middle man in the sale of used games with the next generation Xbox One, Microsoft is in clear violation of this First Sale Doctrine.
Also, by requiring a transferee to connect to Xbox Live at regular intervals to be able to play any title which is purchased as a physical copy, Microsoft is infringing upon the afore-mentioned right to use or display said content, a right which is protected under First Sale Doctrine. There are millions of homes in America and around the world that are still on dial-up internet, or even with no internet access at all. To impose that any physically purchased and owned content necessitate an internet connection to be able to be used would infringe upone the rights of use of any person without readily available broadband access.
Both the used game transfer fee as well as the requirement to connect to Xbox Live to play these physical copies are violating ownership rights obtained when the transferee purchases this content from the transferer. This is not digital distribution media, for which the laws are ambiguous and still being meted out. These are physical copies of games, copies that are subject to degredation over time just as any other physical good, and thus our rights as purchasers of these games need to be upheld under First Sale Doctrine's previous rulings.
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