MP3 Players Win : Court rules Rio does not violate anti-piracy laws

Electronic News, July 12, 1999

San Jose-In what can only be viewed as a major defeat for the recording industry, an appeals court recently ruled that Diamond Multimedia Systems' Rio MP300 did not qualify as a digital audio recording device and therefore does not violate federal anti-piracy laws.

The 9th U.S. Circuit Court of Appeals in San Francisco ruled that the Rio was not subject to the restriction of the 1992 Audio Home Recording Act. What this means is that one of the last legal options for the Recording Industry of America (RIAA), which filed the suit in October of last year, is all but gone and MP3 music and players now have a chance to revolutionize the music industry, some say.

The record industry fears the format will lead to rampant piracy over the Internet and multiple copies of major label artists will be offered for free through many Web sites. Although MP3 music mostly consists of artists that are not well known, major label artists are taking notice and beginning to work deals with various MP3 outfits.

What may help the RIAA in this anti-piracy campaign is encryption coding that a group of MP3 vendors and Web sites may begin using. The encryption would probably be something similar to watermark technology, allowing consumers to use the music on a limited basis.