I offer the following article for your Education:
RIAA Sues XM Over Recording Device
By
Ed Oswald
, BetaNews
May 17, 2006, 11:33 AM
XM Satellite Radio's receiver difficulties continued Tuesday as it was sued
over
the new Pioneer Inno device, and partner Audiovox halted shipments of its
Xpress
Model radio due to a FCC request. The news follows an
earlier disclosure
by the company that the FCC had ruled the SkyFi2 was not in compliance
with its
emission standards.
The RIAA's lawsuit, filed in a federal court in New York, alleges the
satellite radio
provider is committing "massive wholesale infringement" of copyrights by
allowing
users to save songs heard on the service to the device. The suit claims
that users
who have the device would no longer have a need to purchase digital music.
\
The RIAA is seeking $150,000 for every song that is copied by customers who
bought
the player since it was first released earlier in the month. It also takes
issue
with XM's marketing of the device, saying it promotes saving of songs.
XM said that the Pioneer Inno is no different from a person recording from
terrestrial
radio, which has happened for years. Furthermore, it cannot transfer
content, nor
is it an on-demand service, unlike iTunes.
The satellite radio company accused the RIAA of attempting to use
litigation to gain
an upper hand in negotiations to renew licensing contracts. XM says record
labels
of attempting to prevent innovation and consumer choice by limiting how
they can
record broadcasts, which have long been ruled legal by U.S. courts.
Both XM and Sirius are currently renewing their licensing deals, and the
labels are
looking for increased fees as satellite radio becomes more popular. XM had
attempted
to negotiate for portable content, but the labels wanted iTunes-like deals,
which
XM apparently balked at.
Legal problems are not XM's only worries. Audivox said Tuesday that it
would stop
shipments of its Xpress Model XM receiver due to a request from the FCC.
The regulating
agency said that the unit did not comply with operating bandwidth or
related emission
specifications.
An internal review is underway at Audiovox, and the company gave no time
frame for
the resumption of shipments with the issue remedied.
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