While the legal principle backing their idea (first sale rights) is pretty solid, I doubt it will hold up here. The courts have not been kind to first sale and

While the legal principle backing their idea (first sale rights) is pretty solid, I doubt it will hold up here. The courts have not been kind to first sale and fair use rights in the past 5 years. This case is also complicated by the fact that there is no way to ensure that there is no concurrent use. While the system can ensure that no two people simultaneously use my copy of a song, it cannot ensure that I am not using my copy while someone else is.