Universal Music Group Settles With XM Radio
Universal Music Group and XM Radio came to terms and buried a copyright infringement lawsuit filed back May 2006. Both companies chose to keep the details of the settlement under wraps.
December 18, 2007
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.