[Dixielandjazz] Legality of Selling "Loaded" iPod?

[Marty Nichols]

I was chagrined to find that a majority of  folk I asked about it
  believe one may not sell an iPod with music remaining on it.
   
  What do you esteemed DJMLers think?
   
  I had the idea of placing segments of my collection of CDs on some
  iPod Shuffles and selling/trading/giving away.
  Marty Nichols-Freelance Trombonist
  http://myspace.com/freemarty
   
  P.S. Wouldn't they make great Christmas gifts?