A lawsuit brought against XM Satellite Radio Holdings Inc. over their Inno receivers by such record companies as Atlantic Recording Corp., BMG Music and Capitol Records, Inc. will go to trial, according to a ruling by U.S. District Judge Deborah A. Batts. The suit alleges that the receivers, which allow users to record satellite radio broadcasts, violates the record labels’ copyrights. XM asked the judge to dismiss the suit on the grounds that the Audio Home Recording Act of 1992 gave users the right to record radio broadcasts. The judge denied the motion, asserting that the act did not apply in this case and that by enabling recording and playback on the Inno, XM was acting as both a broadcaster, for which it is licensed, and as a distributor, for which it is not.
The AP reports Batts as stating, “It is manifestly apparent that the use of a radio-cassette player to record songs played over free radio does not threaten the market for copyrighted works as does the use of a recorder which stores songs from private radio broadcasts on a subscription fee basis.”
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