Washington, October 9, 1998 -- In a move to protect the creative
content of the music industry, the Recording Industry Association of
America (RIAA), joined by the Alliance of Artists and Recording
Companies, has filed a complaint against San Jose-based Diamond
Multimedia. The RIAA charges that Diamond’s portable MP3 recording
device, Rio, violates the Audio Home Recording Act (AHRA), and in
doing so, encourages consumers to infringe the rights of artists by
trafficking in unlicensed music recordings on the Internet.
The RIAA is seeking a preliminary and permanent injunction enjoining
the sale or distribution of Rio (which is expected to be available in
stores in late October) unless it complies with the AHRA. This
morning, the RIAA filed a temporary restraining order to stop the
distribution of the product until the Court can hear a motion for a
preliminary injunction. The complaint was filed in the Federal
District Court for the Central District of California.
"The RIAA strongly supports the development of new technology as it
exposes music to a wider audience and changes the way consumers
interact with the music they love," said Hilary Rosen, president and
CEO of the RIAA. "Technology must respect creative works. It is the
mission of the RIAA to ensure that as new technologies become part of
consumers' everyday lives, copyright protection keeps pace."
In the past few years, the recording industry has seen the
proliferation of illegal MP3 sites on the Internet. Without the
consent of recording artists, these sites make full-length music
recordings available for free downloads – a practice that is an
illegal activity, as well as a blatant infringement of artists
rights.
In response, the RIAA has been working diligently to shut down
infringing Internet sites that illegally traffic in copyrighted
music. In one afternoon alone, the RIAA uncovered as many as 80 MP3
sites containing a total of more than 20,000 MP3 files, virtually all
of which were unlicensed music recordings of America's favorite
artists.
The RIAA has been concerned about the recent development of MP3
portable recording devices because they capitalize on and are likely
to exacerbate the problem of illegal MP3 music files. It seems
doubtful that there would be a market for MP3 recording devices but
for the thousands and thousands of illicit songs on the Internet.
Under the 1992 Audio Home Recording Act, the manufacturers, importers
and distributors of digital audio recording devices receive a limited
immunity from liability for copyright infringement. In exchange,
manufacturers are required to do two things: First, they must pay a
modest royalty to partially compensate the artists, composers,
musicians, publishers and record companies who are affected by
unauthorized copying. Second, they are required to incorporate into
their devices a Serial Copyright Management System (SCMS) to prevent
the unauthorized making of second generation copies.
MP3 recording devices are governed by this law, and are clearly in
violation of it. The Rio does not comply with the Audio Home Recording
Act because it is not registered with the Copyright Office; it does
not pay royalties; and it does not incorporate SCMS, which prevents
serial copying. These are all requirements of the AHRA.
The AHRA covers a device "which is designed or marketed for the
primary purpose of, and that is capable of, making a digital audio
copied recording for private use." Rio reproduces MP3 music files
from a computer hard drive to the memory of the MP3 recorder. This is
the primary purpose for which it was designed and is marketed. Its
marketing material confirms that it is directed at music-related
uses.
"It was our hope that Diamond Multimedia would be an active
participant in working with us to develop a solution that adheres to
the law and protects the fundamental rights of all artists," said
Rosen. "To our disappointment, Diamond declined to postpone its
product launch so that we could constructively address the issues,
leaving us with no other option than to take legal action to prevent
distribution of these devices. It's a rare occasion that we have to
take measures of this nature. Inter-industry dialogue would be much
more productive."
"It is the RIAA's goal to add to the richness of the music listening
experience and enable generations of listeners to access music’s
fantastic breadth and depth. Promoting a product that encourages
piracy on the net hurts everyone interested in a legitimate online
music marketplace. As e-commerce becomes a reality for more and more
people, the RIAA will be there to ensure that copyright protection
keeps pace. This commitment to all music stakeholders will guarantee
diversity and creativity for the music lovers of tomorrow."
The RIAA is a trade association whose members create, manufacture
and/or distribute approximately 90 percent of all legitimate sound
recordings produced and sold in the United States.
Update: Court Decision On Diamond Multimedia's Rio