XM Satellite asks judge to throw out suit
By TED BRIDIS, Associated Press Writer

http://news.yahoo.com/s/ap/20060717/ap_on_hi_te/satellite_music_lawsuit_3

WASHINGTON - XM Satellite Radio asked a federal judge Monday to throw 
out a copyright lawsuit by the recording industry over the company's new 
iPod-like device that can store up to 50 hours of music.

XM Satellite said the 1992 Home Recording Audio act protects it from 
being sued over its $400 handheld "Inno" device. The law bans some 
copyright claims against equipment makers and consumers who make digital 
music recordings for private use.

In a court filing, XM Satellite said the 1992 protections represent 
"Congress' efforts to insure that the powerful recording industry would 
not be able to restrict the right of consumers to record songs that are 
broadcast over the radio or stifle innovation by chilling the 
development and use of the latest recording technologies."

The lawsuit, filed in May in New York by the largest record labels, 
accuses XM Satellite of "massive wholesale infringement" because the new 
gadget can record hours of music and automatically organize recordings 
by song and artist. The device is sold under the slogan, "Hear it, click 
it, save it."

XM Satellite noted that the trade group for the largest labels, the 
Washington-based
Recording Industry Association of America, supported passage of the 1992 
law.

A spokesman for the recording association, Jonathan Lamy, said XM 
Satellite's legal arguments were "arcane."

"If XM wants to compete with iTunes, Rhapsody and similar music 
distribution services, it needs to obtain the appropriate 
authorization," Lamy said.

The music industry's lawsuit sought $150,000 in damages for every song 
copied by XM Satellite customers using the devices, which went on sale 
in April. The company said it plays 160,000 different songs every month.

XM subscribers pay $12.95 per month to listen to more than 170 channels 
of entertainment, sports and news programs. Music recorded on XM's Inno 
sometimes includes disc-jockey chatter at the start and end of some 
songs and includes static if reception fades while a song is recording.

The lawsuit does not directly seek any payments from or sanctions 
against XM subscribers who record songs. But it accuses XM Satellite of 
contributing to copyright violations by its subscribers and inducing 
customers to break the law, so it's unclear whether consumers could 
eventually be sued, too.

In a related court filing Monday, the Consumer Electronics Association, 
a leading trade association for equipment makers, sided with XM 
Satellite. It also said the company was protected against such lawsuits 
by the 1992 law.

The Home Recording Rights Coalition, a consumer advocacy group, also 
joined in CEA's court filing.

XM Satellite has balked at the industry's efforts to sell expensive 
distribution licenses similar to those required for Internet downloading 
services, such as Apple Inc.'s iTunes. Its chief rival, Sirius Satellite 
Radio Inc., has already agreed to pay for such licenses to cover similar 
gadgets for its service.

XM Satellite has compared its new device to a high-tech videocassette 
recorder, which consumers can legally use to record programs for their 
personal use. It also noted that songs stored on the device from its 
broadcasts can't be copied and can only be played for as long as a 
customer subscribes to its service.


Reply with a "Thank you" if you liked this post.
_____________________________

MEDIANEWS mailing list
[email protected]
To unsubscribe send an email to:
[EMAIL PROTECTED]

Reply via email to