Thursday, December 28, 2006

RIAA's Battle Against All-Of-MP3

December 28, 2006

Those invested in the satellite radio sector are well aware of the RIAA, what it represents, and the issues surrounding how the RIAA impacts the music industry. Currently the RIAA has a law suit filed against XM Satellite Radio for the popular Inno device. The suit with XM seeks $150,000 per song downloaded onto each Inno, and the implications of that suit can be huge, both financially and in precedent.

Satellite radio is not the only company facing the RIAA lawyers. A Russian based down-load service caller All-Of-MP3 is also in the crosshairs.

Today in Wired News, there is an article about this very subject and how All-Of-MP3 is fighting back. All-Of-MP3 cites that their service complies with Russian law, and thus the RIAA has no standing in their suit.


AllofMP3.com sells non-DRM downloads and charges roughly one dollar for albums and only a few cents for individual songs. The U.S.-based iTunes Store on the other hand sells DRM downloads at ten dollars an album and one dollar for songs.

The RIAA’s lawsuit against Media Services, owner of AllofMP3, claims the website is an illegal service and infringes on copyrights owned by the RIAA’s members. The RIAA alleges 11 million songs have been “pirated” using AllofMP3.com.

The RIAA lawsuit seeks $150,000 in damages per violation, which puts the total at over $1.65 trillion, which, as some have already pointed out, is just slightly less than the Gross National Product of Great Britain.

Satellite radio investors will quickly see that the $150,000 figure in this suit falls right in line with the damages sought from XM Satellite Radio. Because this issue has direct ties to Sirius and XM, we would suggest that investors keep up to date with the various suits in play. As you can see, the RIAA is not fooling around, as the damages sought are more than the GDP of many nations!!!!

Interested readers can read the entire Wired article HERE

12/28/2006 02:31:00 PM

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