14 DAY TRIAL // XM and Sirius have closed a deal not a long time ago regarding satellite music broadcast. So good - so far, people have already begun to enjoy this new media, as well as the satellite radio producers have all hurried to release more and more "radiosat" gear.
Now it's time for the response as it looks like the copyright owners aren't quite that happy as well, at least not in what the royalty amount for the broadcast tracks is concerned. Shortly, the National Music Publishers Association (NMPA) complains and sues the newly-born entity because it allegedly poises constant and repeated copyright infringement.
Why? Because they can, actually! The NMPA claim that the MP3 service provided by XM is in perpetual violation of copyright and royalty laws as the listeners can freely record the music being sent via satellite channels and possibly distribute it without paying royalty. Now, we all acknowledge and understand this possibility - yet let us remember the 1992 Home Recording Act, clearly stating that anyone can record radio content (including music) for home, personal use.
NMPA's President, David Israelite, says that the legal action is one of the only ones remaining at the end of rather sterile discussions in the last months on the satellite music royalty problems. In response, an e-mail from Chance Patterson - XM spokesman - describes the actual state of things like this: "XM pays royalties to writers and composers who are also compensated by our device manufacturers[...]We are confident that the lawsuit is without merit and that we will prevail."
It looks like the oncoming years will be full of turmoil based on royalty, copyright and lawsuits caused by such things. Music publishers grouped in NMPA are seeking the maximum damage, the legal $150,000 per track allegedly illegally distributed by XM via satellite services. NMPA has filed complaints related to more than 175 very popular tracks among which one can find Beatles' "Let It Be" or all-time favs "Like A Prayer" or "That's The Way (I Like It)".
Now, all that remains to be seen is what will become of this lawsuit as it looks like the past 6 months were very appropriate for filing all sorts of complaints and asking for ridiculously large sums sought as damage.