SIRIUS & Universal Music Group Settle Receiver Dispute

Friday, March 17, 2006

SIRIUS confirmed that it and Universal Music Group have come to an agreement over the ability to save individual songs on the S50. Labels and publishers threatened to sue SIRIUS for copyright infringement last year over the S50, according to sources. In December there was a "standstill" agreement, extending the deadline date to reach some resolution or settlement. Last month, UMB eLabs president Larry Kenswil called such devices “cannibalization machines." Billborad radio Monitor is reporting that all the ...details of the agreement are still unclear, but sources say Sirius has agreed to compensate UMG for the service and avert a potential legal showdown. Consumer charges will not be affected, according to a source. The deal is expected to act as a template for other major labels similarly concerned with the timeshifting issue, with whom sources say Sirius is also in active negations. The agreement with Sirius and UMG is limited to the S50, but is considered a first step for coming to terms for any future timeshifting products as well. It’s also seen as a significant good faith measure for a separate ongoing debate over the licensing fees satcasters pay to broadcast music. The existing agreement expires at the end of this year.

Read lots more via Billboard Radio Monitor

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