This just in, from the exciting, traffic-spurring world of ongoing digital-music lawsuits:
NEW YORK – A lawsuit in which record companies allege XM Satellite Radio Holdings Inc. is cheating them by letting consumers store songs can proceed toward trial, a judge ruled Friday after finding merit to the companies’ claims.
U.S. District Judge Deborah A. Batts made the finding in a case brought by Atlantic Recording Corp., BMG Music, Capitol Records Inc. and other music distribution companies against the licensed satellite radio broadcaster. In a lawsuit last year, the companies said XM directly infringes on their exclusive distribution rights by letting consumers record songs onto special receivers marketed as “XM + MP3″ players.
XM claimed that their users are keeping the music for private use, and are therefore protected by the Audio Home Recording Act of 1992; the judge gave them the old hells no on that. We’re guessing XM will want to get this matter resolved as quickly as possible, especially with the potential Sirius merger. Nobody wants to hook up with a company carrying an STD (Seriously Troubling Development).