http://redorbit.com/news/technology/576208/xm_satellite_asks_judge_to_throw_
out_suit/index.html

XM Satellite Asks Judge to Throw Out Suit

By TED BRIDIS

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.

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.

---

On the Net:

XM Satellite: http://www.xmradio.com  

Recording Industry Association of America: http://www.riaa.com

Gregory S. Williams
[EMAIL PROTECTED]



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