Here's some more gory details on the suit against XM Satellite Radio by the Record Industry. This suit does not just affect XM, and not even just SIRIUS indirectly (with their new wearable coming out soon, there's no doubt it will have recording capabilities), but jeapordizes all consumer electronic devices that can receive and record a broadcast of any sort (such as DVRs).
If you would like to view the actual filing, you can access it here (PDF - 33 pages).
Make no mistake, this is an attempt by the RIAA to change XM Radio's music license structure from performance (which terrestrial radio is privvy to) to a distribution license (like iTunes or Napster). In the lawsuit, the RIAA completely ignores the Audio Home Recording Act, even though that is exactly what XM designed the Pioneer Inno and Samsung Helix to be in compliance with. The AHRA specifically gives users of digital audio recorders the right to engage in home taping.
But the RIAA ignores the AHRA here. Why? Because 14 years after the AHRA was passed, the RIAA feels that with our evolving technology the AHRA no longer suits their interests. Hence the backing of The PERFORM Act.
According to several sources, XM offered the RIAA payments similar to the agreement made with Sirius, and in fact offered more compensation. But the RIAA didn't want this because it sets a precidence of a la carte device settlements. Yet another reason why Sirius isn't necessarily out of hot water yet. Should the RIAA be successful with this suit, and let's all hope they're not, they will be able to define the scope of a "distribution" right as any service that transmits and allows the recording of a broadcast. That means that not just satellite radio, but terrestrial radio and internet radio would all be at risk.
Ridiculous.
So what about the alleged damages? We've all heard that the RIAA is seeking $150,000 for EACH song saved by the Inno - but with 160,000 songs played per month - how exactly will the RIAA track these occurances? In the suit, they claim that XM has the capability to track each saved song through the XM+Napster interface. As soon as the Inno is plugged into the computer, it is "believed" that XM can then receive a transmission over the internet indicating that a specific song is saved.
But it doesn't stop there.
Because of the Helix/Inno ability to automatically buffer up to 10 minutes into a broadcast, the RIAA feels that those "recordings" are infringements as well. So XM should pay them for the cached music occurances as well. As the EFF points out, if half the Inno users are simply tuned in to XM's music content (not actively recording mind you, just listening to), the statutory damages would reach $37.5 Billion a year. Yeah... wait, what?! That obviously has no bearing on the "harm suffered" by the RIAA considering they pulled in $12.3 Billion last year.
The Inno does not allow transferring of the music off the device. It even allows you to buy the music you've recorded and protects the music with DRM that deletes the songs if you are no longer an XM subscribers. So how can these only be used for anything other than the facilitation of personal use?
[EFF.org via Public Knowledge]