The RIAA is suing XM Satellite Radio for copyright infringement for the latter's new Inno radio that stores 50 hours of music and allows the listener to arrange it into play lists.

Satellite radio is great, but I think XM's case that "this is just radio" is a bit undermined by its website mottos of "hear it, click it, save it," and "the only live portable satellite radio and MP3 player in one."

In the end, the issue should be settled with money. Music needs a medium and media need content, so split the loot. But this cannot happen unless property rights are assigned to the content holder. If the content holders cannot exclude free riders, they have nothing to sell, and the whole system goes kaput. So if XM wins, in a few years it will be broadcasting 170 channels of golden oldies, plus the rejects from American Idol.

posted by James DeLong @ 3:13 PM | Radio

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