The Recording Industry Association of America has stopped suing kids, turning its attention instead to satellite radio provider XM, which is creating a satellite radio device with Pioneer that lets
consumers store songs they hear on XM radio. The RIAA is suing for $150 K per song downloaded, charging XM with copyright infringement, unauthorized delivery, reproduction infringement and unfair
competition. The outcome of this case will likely determine how storage works on digital media devices, which like everything else, are converging. Says the RIAA, "We're making clear that if you
enter into the business of providing distribution, you've got to be licensed." Recently, Sirius, XM's rival, had to settle out of court for its new satellite device, agreeing to pay each recording
company a fee for every device sold. XM argues that the songs aren't true sales, partly because they stay on the device only as long as the owner remains an XM subscriber and can't be moved to another
device. XM's device, called the Inno, can store up to 50 hours worth of music.
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