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RIAA wants $150,000 from XM for every song that XM listeners download

The Recording Industry Association of America has now taken one of its biggest targets to court, and it's not a leader of a big underground MP3 release group. It's XM Satellite Radio. The company, which released its Inno XM2go portable XM player. The issue with the new player from XM is that it allows the user to save tunes that the service broadcasts onto the player. The RIAA says that the player infringes on copyright laws.

The RIAA is looking to charge XM $150,000 for every song that a user downloads into the player. The ironic thing is that there are systems and players out there that have been out there for decades that allow customers to copy songs that are played over traditional radio, but not truely digital to digital as with XM.  The law has allowed for such "analog loopholes" since the inventions of such devices.

For XM, the company says that while users are able to download the tunes they listen to, the songs are then stored on the portable player and users are not able to transfer the songs over as files. XM says that its download feature is not an on-demand service like Apple's iTunes, in that users can pick the songs they want when they want it. XM says that the RIAA's actions are stiffling innovation and that it will fight the lawsuit on behalf of consumers.




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By Scott66 on 5/18/2006 1:33:51 AM , Rating: 2
I was under the impression that radio stations did not pay for the music they play as it is in the record companies best interest to get the airplay so they can sell more records?

Please either confirm or correct my assumption.




By PT2006 on 5/18/2006 2:09:43 AM , Rating: 2
They buy license packs, basically "Top 40" material from the labels. The labels let them play the music for X months or so after which I think they have to purchase the rights to indivdual tracks.


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