Copyright Case Against XM Set to Proceed

XM Satellite Radio suffered a setback in the copyright infringement case brought against it by the major labels, as a U.S. District judge denied the satellite radio provider's motion to have the case dismissed. At issue are the recording capabilities of some of the company's radios. The record labels say this violates the agreements struck between the two groups, as it only covered live broadcasts and not the right to record programming from it.

However, XM says the effort is without merit, and is confident that it would eventually prevail in court. However, New York District Judge Deborah Batts feels that there is enough merit in the recording industry's claims to allow it to proceed to trial. Recording industry representatives had no immediate comment.