Sirius Satellite Radio stated in a filing with the SEC today, that a licensed manufacturer and distributor of Sirius radios, "has commenced an arbitration proceeding" against them - seeking a total of $48 million.
The company, U.S. Electronics Inc., alleges that Sirius breached their contract, failed to pay money owed under the contract, interfered with U.S. Electronics’ relationships with retailers and manufacturers, and withheld information relating to the FCC’s inquiring into Sirius radios that include FM modulators.
As a result, U.S. Electronics is seeking $48 million in damages.
Sirius believes that $41 million of these damages are barred by limitation of liability provisions within their contract, and said they will "vigorously" defend this action.
Bahaha
Have you noticed all the little law suits against both XM and Sirius about the stupidest things....repeaters, etc. NAB and terrestrial radio are scared....very scared!!!
Hey...where'd everybody go?
48 mil..... PEANUTS to a company that can lose 1.1 Billion in a year. Take a number.
hey.. wait.. this claims that a manufacturer of sirius radios was not informed by Sirius... I was told it was the other way around... Sirius also claimed in the Q2 2006 CC that they had not received any letter. I smell Class action here. Just like with XM, leave open a window and the NAB will push someone through it just to throw another wrench in the works in a nother lame attempt at stopping "non compitition".
Why XM would even consider merging with Sirius is just beyond me.
WGAS. Sirius rules! XM drools
I learned today that there used to be only one sarad company, Sirius when it was first started. The government split the company into two Sirus which was existing and XM. XM went right out with the patent and starting selling radios, while Sirius perfecting the technology before starting. That is why XM got a head start. The creator of satellite radio was on stern yesterday and provided some very interesting information. When the companies spilt XM and Sirius were left with half of the capabilities, but when they merge the new company while have huge possibilities. It will be amazing!!