[Ecommerce] Fwd: [LawfulUse] sat radio in trouble for vcr capabilities?

[Manon Ress]

thanks to Alex Curtis for pointer to this interesting story:

QUOTE:
> The rupture over the portable devices comes as the music industry
> is gearing up to demand higher licensing fees from the satellite
> radio industry once the current seven-year contract expires at the
> end of the year.
END of QUOTE
> from http://www.nypost.com/business/54114.htm
>
> BROKEN RECORD
> By TIM ARANGO
>
> EXCLUSIVE
>
> Portable players from satellite radio giants XM and Sirius are
> coming under attack by the music industry for allowing listeners to
> record and store songs =97 something that record executives argue
> runs afoul of copyright law, The Post has learned.
>
> The Recording Industry Association of America, the record
> industry's powerful lobbying group, has been holding discussions
> with XM and Sirius about the devices, which could become the next
> target in the music industry's ongoing battle to ensure it is paid
> in a time of rapidly advancing technologies.
>
> "It could become a game of chicken =97 who's going to blink first?"
> said one high-level record company executive.
>
> As of yesterday, sources close to both XM and Sirius say the
> devices will be released on schedule this fall.
>
> Representatives for XM, Sirius and the RIAA declined to comment on
> the controversy over the players.
>
> Last week, the RIAA discussed the issue on its weekly conference
> call with representatives of the four major music companies,
> sources said. And last night, a separate call was held solely to
> discuss the issues surrounding XM and Sirius' portable devices.
>
> In late July, XM announced a partnership with Samsung to produce a
> portable device that allows users to record songs from satellite
> radio broadcasts and then catalog and save favored songs while
> deleting others.
>
> Sirius later announced a similar device, called the S50, which will
> be about the size of an iPod and released in October.
>
> The music industry argues the recording capability =97 essentially
> Tivo for radio =97 is a clear copyright violation and could take
> revenue away from paid download music stores, such as iTunes. One
> high-level record executive argued the devices give users
> "permanent ownership of copyrighted material without paying for it."
>
> XM has a deal with the paid service Napster, which allows user to
> click and buy songs they hear on satellite radio broadcasts. The
> deal was welcomed by the industry, yet raises the question, in the
> words of one music exec, "Why would anyone use the Napster platform
> to buy it if XM is giving it away for free?"
>
> Some record executives expect an ugly battle if XM and Sirius don't
> modify the devices.
>
> "They can't do this without being sued," said a high-level music
> exec involved in the discussions.
>
> The rupture over the portable devices comes as the music industry
> is gearing up to demand higher licensing fees from the satellite
> radio industry once the current seven-year contract expires at the
> end of the year.
>
> The current contract is for below market rates =97 a deal that
> "essentially financed satellite radio's introduction and gave them
> a seven-year license at vastly below market rates in order to allow
> that busines model to occur," said Warner Music boss Edgar Bronfman
> Jr. at a recent investor conference.
>
> Bronfman's comments came in response to a statement from Sirius
> chief Mel Karmazin, who said he expected the pricing issue to
> ultimately be decided by arbitration.
>
>
>
>
>
>
>
>
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>
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>

************************************************
Manon Anne Ress
manon.ress@cptech.org,
www.cptech.org

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