U.S. District Judge Deborah A. Batts in New York has refused to throw out a record-industry lawsuit against XM Satellite Radio. XM was accused last May by the Recording Industry Association of America (RIAA) of violating its license deal by making it possible for subscribers to record music on special digital players. The recording companies filing the suit include Atlantic, BMG Music, Capitol Records, Elektra, Interscope Records, Motown, Sony BMG, UMG, Virgin Records and Warner Bros.
XM said in a statement that it remained confident that the lawsuit was without merit, and that the company would prevail: "At this stage of the proceeding, the court's ruling is required to be based on the false characterizations set forth in the plaintiff's complaint. The real facts strongly support our view that the lawsuit is barred by the Audio Home Recording Act. We look forward to making our case in court."
The act is part of U.S. copyright law and makes it legal for people to record music from a radio for personal use. Record companies are arguing that subscribers should not be able to record music with special receivers with an MP3 player. Music recorded cannot be transferred to other devices and the makers of the players haven't been sued. With the RIAA though, you never know.
News source: InformationWeek