UPDATE 1-Music publishers sue XM over copyrighted songs use
(Adds XM statement, details)
LOS ANGELES, March 22 (Reuters) - The National Music Publishers' Association (NMPA) filed a lawsuit against XM Satellite Radio Holdings Inc XMSR.O on Thursday for providing radios that allegedly let users reproduce and distribute copyrighted music without paying appropriate royalties.
The publishers said the suit alleges that XM engages in massive copyright infringement with devices that provide its service known as "XM + MP3," which lets listeners store songs they hear on XM's service and arrange them into playlists.
In a statement, the publishers' group said the suit, filed in New York federal court following months of failed negotiations, includes such well-known songs as "Let it Be," "My Heart Will Go On" and "Me and Bobby McGee."
The complaint seeks a maximum of $150,000 in statutory damages for each work infringed by XM, and lists over 175 songs as a "small fraction" of those being illegally distributed through the "XM + MP3" service.
In a statement, XM said the lawsuit was a negotiating tactic to gain an advantage in ongoing business discussions.
An XM spokesman said it pays royalties to writers and composers who are also compensated by its device manufacturers and that it was confident it would prevail and the lawsuit was without merit.
Last year, the Recording Industry Association of America (RIAA) filed a similar copyright infringement lawsuit against XM on behalf of its record label members.
In January, XM was dealt a setback in that copyright infringement case when its motion to dismiss that lawsuit was denied by a federal court.
The case, originally filed last May in New York federal court, alleged that XM's portable "Inno" device -- which can store music -- infringes on copyrights and transforms a passive radio experience into the equivalent of a digital download service such as Apple Inc.'s (AAPL.O) iTunes.
XM argued that the 1992 Home Recording Audio Act protected it from being sued, saying that the law shields equipment makers and consumers who make digital music recordings for private use.
