XM Satellite Radio - XM Vs RIAA

XM Vs RIAA

In 2006, XM Satellite Radio was sued by the RIAA over XM's new portable devices the Inno and Helix. The RIAA claims these devices are equivalent to a downloading service, whereas XM contends the devices are protected under the 1992 Audio Home Recording Act. In July, XM requested that a federal judge dismiss the case. It should be noted that XM's subscribers can save only songs they hear on the radio and cannot request a specific song to be downloaded or program their radios to record specific artists. XM's portable devices allow the consumer to record a portion of their broadcast much like a VCR, DVR, or cassette player would allow. The content a subscriber records is available only while the subscriber still has an active account with XM Satellite Radio. Once the account is terminated, the recorded content will become inaccessible. Also, If a subscriber fails to listen to a total of 8 hours of programming a month, the recorded content will not be accessible. Recorded content can be accessed only on the portable device; it cannot be transferred to a home computer or separate digital music player.

The idea is not new: TimeTrax Technologies Corporation developed an application to record songs to MP3 and tag them with the artist and title information directly from the XM network. In 2005 XM attempted to thwart this practice by discontinuing the required XM PCR radio. TimeTrax responded by quickly rolling out adaptive interfaces to allow almost any XM subscriber to use their tuner to build music libraries directly from XM broadcasts. There is speculation that these fumbles by XM and its attitude towards the Time Trax technology may have been the warning shot of major troubles between the RIAA and XM.

On January 19, 2007, a district judge ruled that the RIAA could proceed with the lawsuit, rejecting XM's defense that the conduct alleged in the complaint—if proved by the RIAA—would be immune under the Audio Home Recording Act of 1991.