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Music servers and other computer based digital audio technologies.

I don't read it that way

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I don't see where he states the CDs are included, If he does it would be legal in the US as I understand it.

If he sold you the drive and the discs and he retained a copy that would be his problem, no different than someone who copies a CD and then sells it. Selling the CD is fine but keeping a copy is not.

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