XM Satellite Radio settles suit with Universal Music
Source : Ottawa Citizen
December 18, 2007
NEW YORK - XM Satellite Radio Holdings Inc. said yesterday it has settled a patent infringement lawsuit filed by Universal Music Group and hopes to reach deals with the other music companies.
The dispute centres around XM's portable "Inno" device, which can store and record music from satellite radio.
Major music labels including Vivendi's Universal, Warner Music Group Corp, EMI Group Plc and Sony BMG sued XM in May 2006, saying the Inno infringes copyrights and transforms a passive radio experience into the equivalent of a digital download service such as Apple Inc's iTunes.
XM said yesterday it reached a multiyear deal with Universal, which will withdraw from the complaint. It said the pact covers all XM radios with advanced recording functions, including future products. XM did not give the financial terms.
Warner Music is in talks with XM to try to settle the dispute and expects a resolution soon, said a source familiar with the matter who spoke on condition of anonymity.
Janco Partners analyst April Horace said the Universal agreement would likely be followed by others.
"Once you've created a precedent in how to resolve that issue, I think it's easier to resolve the others," said Ms. Horace.
© Ottawa Citizen
The dispute centres around XM's portable "Inno" device, which can store and record music from satellite radio.
Major music labels including Vivendi's Universal, Warner Music Group Corp, EMI Group Plc and Sony BMG sued XM in May 2006, saying the Inno infringes copyrights and transforms a passive radio experience into the equivalent of a digital download service such as Apple Inc's iTunes.
XM said yesterday it reached a multiyear deal with Universal, which will withdraw from the complaint. It said the pact covers all XM radios with advanced recording functions, including future products. XM did not give the financial terms.
Warner Music is in talks with XM to try to settle the dispute and expects a resolution soon, said a source familiar with the matter who spoke on condition of anonymity.
Janco Partners analyst April Horace said the Universal agreement would likely be followed by others.
"Once you've created a precedent in how to resolve that issue, I think it's easier to resolve the others," said Ms. Horace.
© Ottawa Citizen
