LOS ANGELES (Reuters) - The recording industry on Tuesday sued XM Satellite Radio Holdings Inc., alleging its Inno device that can store music infringes on copyrights and transforms a passive radio experience into the equivalent of a digital download service like iTunes.
A spokesman for the Recording Industry Association of America, comprising major labels such as Vivendi Universals Universal Music Group, Warner Music Group Corp., EMI Group Plc and Sony BMG, said the suit was filed on Tuesday in New York federal court.
The suit accuses XM Satellite of "massive wholesale infringement," and seeks $150,000 in damages for every song copied by XM customers using the devices, which went on sale earlier this month. XM, with more than 6.5 million subscribers, said it plays 160,000 different songs every month.
"...Because XM makes available vast catalogues of music in every genre, XM subscribers will have little need ever again to buy legitimate copies of plaintiffs" sound recordings," the lawsuit says referring to the hand held "Inno" device.
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