XM+MP3 Going to Trial

fistfullast33l writes "A federal judge has ruled that Music Companies can take XM Radio to trial over the XM+MP3 device that allows users to record songs off the Satellite Radio Company's network for playback later. The lawsuit, which was filed last year, asserts that XM is violating the Music publishers' sole distribution rights. From the article: 'XM has argued it is protected from infringement lawsuits 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 the company was protected in this instance by the act.'"

Comments

This is just a negotiating tactic

[Jack Pallance]

The music industry knows that they don't have a leg to stand on. What they want is a way out of their contract to license music to satellite radio. When the radio companies started paying big money for on-air personalities (Think Howard Stern, Oprah, etc), the music companies wanted a bigger piece of the pie.

They're reasoning is that music is the biggest draw for XM listeners. So if XM can afford to pay Jimmie Johnson a million a year for one radio show, then the music cartel deserves at least 60 times that much (for sixty channels of music). But currently, the muisc mafia is locked into a ten year contract for a total of 60 million dollars.

This was all explained in a letter to XM subscribers a couple of months ago.