RIAA vs XM Lawsuit: Judge Rules in Favor of Record Companies

Friday, January 19, 2007 at 12:54 PM
Tags: 2, XM

Inno HelixIn the lawsuit brought on by the RIAA vs XM Satellite Radio against their XM+MP3 devices, U.S. District Judge Deborah A. Batts has ruled that the suit can go to trial, finding merit the RIAA's claims.

XM argued that the XM+MP3 devices (i.e, the Inno, Helix, and Nexus) are protected by the Audio Home Recording Act of 1992, which permits individuals to record music off the radio for private use. The judge said she did not believe XM was protected in this instance by the act.

The judge also said that XM operates like traditional radio broadcaster, but by broadcasting and storing copyrighted music for later recording by the consumer, the judge said XM is both a broadcaster and a distributor, but is only paying to be a broadcaster. This is a fundamentally incorrect statement. XM and Sirius do not pay the same broadcaster fees as a "traditional radio broadcaster" does (terrestrial radio in fact does not pay a single dime to the record companies)..

Batts also felt that the comparison of the XM+MP3 player and a cassette recorder is unfounded: "It is manifestly apparent that the use of a radio-cassette player to record songs played over free radio does not threaten the market for copyrighted works as does the use of a recorder which stores songs from private radio broadcasts on a subscription fee basis," she said.

So apparently the difference is that recording songs over free radio is OK, but recording songs over subscription radio is not.

XM issued this statement:

"At this stage of the proceeding, the court's ruling is required to be based on the false characterizations set forth in the plaintiffs' complaint. The real facts strongly support our view that the lawsuit is barred by the Audio Home Recording Act. We look forward to making our case in court."

[MSNBC]
Thanks to Jeff & Ian! 

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Comments

worst case XM does not win and goes under cause of the cost of the infringment.
(not likely)
This is not likely cause XM offers them all the same compensation that Sirius did and this proposal was refused.

Best case is not best cause the best case would be XM wins. If anyone out there thinks that HD radios will not have this feature soon. Go back under your rock. There is already a device out that records off FM. Not much of a leap here. what about a HD broadcast and a DVD recorder then set on Random. No Different. Difference is that tech has gotten better, smaller and cheaper.

What I think will happen.... XM will be forced to pay the exact same rates as Sirius.

But all the above is base on a fair unbiased world free of coruption and bribes.

I believe that XM will win in the end, but that will only stand until the RIAA gets their new law enacted to force anyone who has ever heard music to buy them a new car. On a side note, You have to love the lawyer speech that basically says, "You a F'ing liar".

I predict that Panero will sell 5 million bucks worth of stock 2 days before the verdict which XM will lose.

Then He can get sued again in another class action suit and go double-or-Nothing with his XM ( paid ) attorneys.

What a putz.

Fire him Gary.

Way to want XM to lose the suit. The ability to record individual songs is what sets the Inno so far apart from the block recording capabilities of the Stiletto. This is a lawsuit Sirius should be all over so they can offer their customers the same functionallity in their devices. Pockpie, you are a dipshit.

PFreak, I can record individual songs on my Stiletto, and so can my dad, why can't you?

What you can't do is record say 12 hours of a station and then go through what you recorded and delete any unwanted songs. You can only block record. Huge difference. The Siletto forces you to fill up the memory with stuff you don't want with no way to delete it without losing other content.

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