Those rather shady 'music industry insiders' are predicting that the next target for the major record companies in their ongoing legal battle to protect their digital interests might be the growing satellite radio sector. This follows the launch of new portable devices from American satellite radio companies Sirius and XM which allow listeners to record programmes, including music programmes, off their satellite radio services, which can then be listened to on demand. That, some in the record labels argue, could hit the sales of legitimate download platforms.
Commenting on the issue in a report, JP Morgan analyst Barton Crockett writes: "Based on recent talks with execs at record labels and the Recording Industry Association of America (RIAA), we see potential spats ahead. RIAA may file a lawsuit this fall to stop a new feature for upcoming [portable] satellite radios".
Both the recording industry and the satellite radio players recognise the potential issues here, but both currently hope some kind of compromise can be reached. A spokesman for the Recording Industry Association Of America told Reuters: "There are genuine issues here but it is our continuing hope that we can resolve this on a business to business basis", while Nathaniel Brown of XM said: "The music industry is an important partner and we continue to listen to their concerns in hopes of finding a resolution that benefits everyone, especially consumers".
Whether the music industry would take legal action against the satellite radio companies, and whether they could win, remains to be seen. However, their concerns about the new portable devices and the possible option of using litigation to stop their sale might give the record labels a stronger hand when they renegotiate their general licensing arrangements with the satellite radio companies.