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Record Co.'s Taking XM To Court, Will this Happen to Sirius?
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| Record Co.'s Taking XM To Court, Will this Happen to Sirius?
- Click HERE to go to the original thread with graphics
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| got1toburn |
I wonder if this would happen to Sirius? because of the Stiletto & such?
Here's the Story:
If cash flow issues aren’t enough to beat a stock down, then lawsuits certainly are, especially those that may have merit.
Shares of XM Satellite Radio (nasdaq: XMSR - news - people ) dipped Friday when a U.S. District Court judge ruled in favor of a lawsuit filed last year by record companies alleging that the paid radio service is cheating major labels by allowing listeners to store songs on receivers.
XM shares dipped 4.5%, or 74 cents, to $15.71 in Friday trading.
XM is the only other player in the satellite game next to rival Sirius Satellite Radio (nasdaq: SIRI - news - people ). Sirius stock declined 2.5%, or 10 cents to $3.95 in midday trading.
U.S. District Judge Deborah A. Batts ruled that the case against XM could proceed to trial.
Batts made the finding in a case brought by Atlantic Recording, BMG Music, Capitol Records and other music distribution companies against the licensed satellite radio broadcaster.
In a lawsuit last year, the companies said XM directly infringes on their exclusive distribution rights by letting consumers record songs onto special receivers marketed as “XM + MP3” players.
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.
In refusing to toss out the lawsuit, the judge noted that the record companies consent to XM’s use of their copyrighted material solely for the purposes of providing a digital satellite broadcasting service.
She said XM operates like traditional radio broadcast providers, who cannot offer an interactive service, publish programming schedules prior to broadcast or play songs from an artist more often than specified within a three-hour period. But by broadcasting and storing copyrighted music for later listening by the consumer, the judge said XM is both a broadcaster and a distributor, but only paying to be a broadcaster.
Although XM argued in court papers that an XM + MP3 player is much like a traditional radio-cassette player, the judge said “it is not.”
- The Associated Press contributed to this story. |
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| STLSteve |
It shouldn't happen to Sirius because they signed a deal with the record companies before they came out with the S50. They pay a fee to the record companies for ever S50 and Stiletto they sell.
XM thought they could get by without it and chose to try their luck in the courts. |
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