pride ourselves on empowering new technology and expanding consumer choice. And XM is providing a new and exciting opportunity for music lovers around the world to discover and enjoy our content, while at the same time recognizing the intrinsic value of music to their business and the need to respect the rights of content owners."
XM Radio’s problems started ever since the launch of the XM Inno, a portable XM Radio receiver which enabled user to record up to 50 hours of programming. Soon enough, the big four record labels sued XM Radio, claiming that the device was infringing their copyrights and it was “essentially a free version of iTunes.” It goes without saying, it was also feared that the widespread of the device would hurt the ever-shrinking revenues of the industry.
Now it seems that the two companies have negotiated some sort of licensing fee, similar to what Sirius is currently paying Universal. One down, three more companies to go, and don’t be a bit surprised if the other plaintiffs aren’t already in negotiations with XM Radio over a future settlement.