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March 22, 2007

A news break for your Friday evening: The National Music Publishers Association is suing XM Satellite Radio.

The issue is the same that is at the heart of a lawsuit brought by record labels: Digital copies on portable players of songs transmitted by XM. Royalties are paid for the broadcast but not for the creation of the digital copy, which the industry has insisted is not covered in the existing licensing agreements. Said NMPA President/CEO David Israelite, "We've read that XM paid Oprah $55 million to develop content. Yet they haven't paid one penny to creators of music for copies on these devices."

Part of XM's statement: "The lawsuit filed by the NMPA is a negotiating tactic to gain an advantage in our ongoing business discussions. 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."

Extra reading:

NMPA's press release on the lawsuit

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Posted by Glenn at 6:43 PM | | | XM