Record labels sue XM over portable device

Found on Reuters on Tuesday, 16 May 2006
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The suit accuses XM Satellite of "massive wholesale infringement," and seeks $150,000 in damages for every song copied by XM customers using the devices, which went on sale earlier this month. XM, with more than 6.5 million subscribers, said it plays 160,000 different songs every month.

"...Because XM makes available vast catalogues of music in every genre, XM subscribers will have little need ever again to buy legitimate copies of plaintiffs' sound recordings," the lawsuit says referring to the hand held "Inno" device.

While the labels are asserting the device has transformed radio broadcasts into a download service, XM said the device does not allow consumers to transfer recorded content. XM also said that content recorded from radio broadcasts like XM's is not on demand, in contrast to the content people buy from online music stores like Apple Computer Inc.'s popular iTunes service.

XM said it will vigorously defend this lawsuit on behalf of consumers and also called the lawsuit a bargaining tactic.

"The music labels are trying to stifle innovation, limit consumer choice and roll back consumers' rights to record content for their personal use," XM added.

It seems to be quite a lucrative business to sue your profits out of others instead of adapting your business model to modern times. However, there is a practical solution: if the music industry doesn't want its music being used, simply don't use it. There are enough independent artists out there.