Labels Sue XM Radio Over Inno Recording Device

Monty B · 05-17-2006, 09:00 AM

http://www.mtv.com/news/articles/153...headlines=true

XM thinks of its Inno device as a high-end VCR that customers can use to make personal copies of their favorite satellite-radio programs. The recording industry sees it as a form of "massive wholesale infringement" and it took action with a federal lawsuit filed Tuesday in New York to cut the power.

According to The Associated Press, the battle between the record labels and the leading satellite service is over the question of how consumers can legally record songs on the next-generation devices. The recording industry says the $400 iPod-like device that allows XM users to record up to 50 hours of music and automatically organize recordings by song and artist is a form of copyright infringement. The Inno's slogan is "Hear it, click it, save it."

The suit seeks $150,000 in damages for every song copied by XM customers using the devices, which went on sale several weeks ago. The company says it plays 160,000 different songs every month. While the suit doesn't seek to punish XM customers or have them pay for the alleged infringement, if it were successful, it could raise the company's costs — which could result in higher monthly fees than the $12.95 consumers currently pay, according to the AP.

XM vowed to fight the suit and accused the labels of using the action as a form of leverage during negotiations over licensing fees. "These are legal devices that allow consumers to listen to and record radio just as the law has allowed for decades," XM said in a statement. "The music labels are trying to stifle innovation, limit consumer choice and roll back consumers' rights to record content for their personal use."

XM has argued that the device is more like a VCR than an iPod, because it allows consumers to store songs that can't be copied and can only be played as long as they retain their subscription to XM. While XM rival Sirius has agreed to pay the kind of expensive distribution licenses as those paid by download services like iTunes for its portable devices, XM has so far refused. XM chairman Gary Parsons has said those licenses — on top of the performance licenses the company already pays the music industry — would amount to a "new tax being imposed on our subscribers."

The head of the Recording Industry Association of America said XM's device is legally indistinguishable from iPods and other portable music players that work with downloading services, according to the AP

"Yahoo!, Rhapsody, iTunes and Napster all have licenses," said RIAA chief Mitch Bainwol. "There's no reason XM shouldn't as well."

Blu · 05-17-2006, 09:59 AM

I'm sorry but this whole copyright thing is getting insane!

These people will never give up with their lawsuit madness until they are soundly defeated in court. I hope that this happens.

Jed M · 05-17-2006, 11:52 AM

Enough! When did we as consumers and citizens lose all our rights to corporations? This is just getting ridiculous. These politicians have forgotten they work for us, and rightfully so since we are too busy fighting over red and blue to give a crap about how bad they are sticking it to us.

Chris · 05-17-2006, 01:36 PM

Should be noted, SIRI had already made a deal with RIAA in reference to their S50 unit prior to full shipment, as well as an agreement toward future units. The agreement they made basically came down to a slight increase in the ASCAAP fees (I beleive that's the right org) for songs played.

James St · 06-20-2006, 06:33 PM

XM has started sending out emails on this issue...

Quote:

Dear ------,

I'm emailing you personally because XM Satellite Radio needs your help. Please click here to contact Congress and learn more about this issue.

The big record companies are pressuring Congress to pass legislation that would prevent XM listeners like you from having access to more music choices and new technologies. If these powerful special interests get their way, it will be much tougher for satellite radio to keep bringing you the unique and innovative artists you find on XM.

Let me explain: With 69 commercial-free digital music channels, XM provides an outlet for recording artists of virtually every musical style and genre.

XM has been a good friend to the music industry and, more importantly, to artists and songwriters. XM helps listeners discover new artists and rediscover forgotten favorites, stimulating CD and concert ticket sales.

We make sure artists and songwriters are fairly compensated for their music: XM pays a portion of your subscription fee to them and their record labels for the music you hear. Satellite radio has already paid tens of millions of dollars in royalties -- and over the coming years it could pay hundreds of millions more. By contrast, conventional AM and FM radio stations pay nothing to recording artists or their record labels.
In fact, satellite radio, including XM, is now the largest payer of digital performance royalties to artists and record labels in the country.
But the big record labels want more -- a lot more -- and are trying to use Congress to stand in the way of the future. They are pressuring Congress to pass legislation that would prevent XM listeners like you from being able to use our new radios. These radios allow XM subscribers to record music they hear on XM for personal use so you can listen later - in the same way TiVo allows you to record TV shows for later viewing.

This could mean fewer music choices and less new technology for you in years to come. Those who stand in the way of progress never prevail and they won't this time, if you and the other 6.5 million members of the XM Nation act today.

Again, I hope you will click here to contact Congress and learn more about this issue.

Thank you for being a part of the XM Nation. With your support, XM Satellite Radio will continue to bring you the highest quality music, talk, sports, news and innovation.

Best Wishes,

Hugh Panero
CEO of XM Satellite Radio

**HTF Ads**

Stu Rosen · 06-20-2006, 08:21 PM

Quote:

Originally Posted by Jed M

Enough! When did we as consumers and citizens lose all our rights to corporations? This is just getting ridiculous.

Well, as an Inno owner and copyright lawyer (true), I do have to say that we never had the rights to the sound recordings the Inno can so easily copy. The record companies do, and even if you don't think they're acting intelligently, or with their long-term interests in mind, these are clearly their rights, not ours.

Cry fair use if you'd like (and here, you may have a stronger argument than the usual ones made in support of file-sharing), but it would help if the arguments start with some facts.

Jed M · 06-20-2006, 11:34 PM

I stand by what I said. Just because it is a law doesn't mean it is right. I can point out numerous laws this country has had that they are ashamed of and many they currently have that they should be ashamed of. Just because they make it law for the corporations to pillage the public doesn't mean I am just going to accept it "because its a fact".

Stu Rosen · 06-21-2006, 06:01 AM

That's fine - you don't have to think it's "right," but if there's going to be a useful discussion, you also can't ignore what's true - and it's just plain true that no one's taken a legal right from us.

TheLongshot · 06-21-2006, 03:56 PM

Well, XM has a tough one here, since they are probably the only holdout in such things.

At the same time, the RIAA seems to not care that they are trying to extract water from a stone. Really, how petty is it to go after a company who allows recording of highly compressed songs from a limited library that can't be copied to another device. Not exactly what I'd call a big threat to their bottom line.

Certainly, the RIAA has the legal right to do this. Problem is, it is really good business? Rather than looking at it as a loss leader for people to actually go out and buy some music, they try to extract every nickel and dime they can. In the end, I wonder it it costs more for them to do this, than it would if they actually embraced some of it and took it for the "free" advertising that it is.

Jason

RomanSohor · 06-22-2006, 10:05 AM

Honestly, I do not understand how it is "easy" to copy songs off the unit.

If someone wants to get an MP3 file of a song they recorded off of XM, here's how "easy" it is.

1. Connect your Inno to the computers line input with a 1/8" - 1/8" cable (not included with unit)

2. Fiddle with adjusting the compuers mixer and the volume of the Inno until you get it just right.

3. Launch your sound recording software. (You have to buy something because Windows Sound Recorder can't encode MP3 and can't record longer than 60 seconds)

4. Record song. After recording it, edit out the dead space at the beginning and the end. Hope that there isn't a DJ talking over the intro of the song.

5. Save file as MP3, unless your program supports WAVE only. Then find LAME encoder and convert .WAV to .MP3

6. Input all the meta data for Artist, Title, Album, year, etc.

Oh and did I mention that the sound quality you have acheived will be much much lower than ripping a CD which you can do with a free and simple peice of software (iTunes, Windows Media Player).

Now, I don't know if there is an "explorer" type program that can extract individual songs off the unit digitally - I don't think there is. And even if there is, that could easily be worked around by changing the software on the Inno so that it won't let that program work any more.