Sirius, EMI make deal over S50

Thursday, April 13, 2006

SIRIUS has reached an agreement with music label EMI Music Group over a controversial portable radio player that doubles as an MP3 player.

The deal, which will allow Sirius to market its S50 device without fear of a pitched legal battle, follows pacts Sirius made with the three other major music labels last month. Music executives had argued that Sirius' player, which allows users to record up to 50 hours of music without paying any additional fees, violated earlier agreements they had signed with the satellite service.

The labels had previously threatened to head to court to prevent Sirius from selling the device. But last month Warner Music Group, Vivendi Universal's, Universal Music Group and Sony-BMG, a joint-venture of Sony and Bertelsmann, all settled with the satellite service. Those deals reportedly call for Sirius to pay the labels a fee for each device sold, and cap the number of gadgets that Sirius will sell.

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