Record companies sue XM over recorder; What exactly does it mean to buy music, anyway?

News that XM is being sued by the record companies for introducing the Inno – essentially, a “TiVo for radio” – makes us mad enough to go out and buy one immediately, just to screw with the labels. But before we lash out at the world’s favorite boogeyman, the shiftless record executive, let’s look at what’s really at issue here.

As the Wall Street Journal reports today,

“satellite-radio devices…blur the distinction between listening to a song and owning it…The issue stems from the type of payment, known as performance rights fees, that XM pays the music industry for the right to broadcast songs.

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Spring Special

Save 30% Off an ADWEEK Subscription Today!

View Your Options

Already a member? Sign in