XM and MP3 Players Infringement Case

Last Friday, XM Satellite's motion to dismiss was denied for Atlantic v. XM Satellite. This copyright infringement case was introduced to courts by record labels on XM and MP3 players. XM Satellite tried to dismiss the case, because under Sec. #1008 of the Audio Home Recording Act, MP3 player is exempt from infringement claims.

"No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device [DARD], a digital audio recording medium, … or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog recordings."

However, the court decided that the Audio Home Recording Act does not excuse XM Satellite from infringement claims due to the operation of the satellite subscription music service program combined with the MP3 player.

"[U]nder the AHRA, XM is protected from suit based on actions taken in its capacity as a distributor of audio recording devices, but it is not immunized from suit based on its conduct as a satellite radio broadcaster, or from suit based on its actions as an XM + MP3 content provider."