RIAA sues XM satellite radio over mobile recording device

May 17, 2006

DamnedIfIknow used our news submit to tell us that the RIAA has gone
after XM radio on Tuesday, over an iPod type device that allows users to record
up to 50 hours of music from satellite streams. The $400 portable
recorder/player called the "Inno" can also automatically organize the
recorded material by song and artist. This suit is interesting, as it once
again will speak to portability of digital entertainment and how we can use our
legal purchases in the future.

The lawsuit seeks $150,000 in damages for every song copied by XM Satellite customers using the devices, which went on sale weeks ago. The company said it plays 160,000 different songs every month.

The lawsuit does not seek directly any
payments from or sanctions against XM Satellite customers who record
songs. But if the lawsuit were successful, it could raise the company"s
costs, which could be passed on to subscribers as higher monthly
fees.

XM is saying that the RIAA is merely using the legal
system as a way to leverage a business deal. They argue publicly that the
law allows consumers to listen to and record radio this way and has for decades.
They say that the actions by the RIAA are just more of the same innovation
stifling measures that are basically an attempt to create a new tax on the
consumer. For those that wish to read the article in it's entirety, please follow this link to Yahoo!

Source: Yahoo!