Major Labels Sue XM
May 16, 2006 at 3:35 PM (PT)
The AP reports that the recording industry filed a federal lawsuit against XM SATELLITE RADIO today (5/16) over the broadcaster's new handheld digital player, "Inno," which can store up to 50 hours of music for a monthly fee.
The suit, which was filed in NEW YORK by the major labels, reportedly accuses XM of "massive wholesale infringement" because the device can record hours of music and automatically organize recordings by song and artist. The Inno is sold under the slogan, "Hear it, click it, save it."
The lawsuit seeks $150,000 in damages for every song copied by XM customers using the devices, which went on sale weeks ago. The company said it plays 160,000 different songs every month.
Sources at XM have told ALL ACCESS that an official comment on this matter should be released tomorrow (5/17), so stay tuned.