Federal Court Says Rio Player Is Legal
By James C. Luh
Internet World -- June 21, 1999
A federal court last week ruled that Diamond Multimedia Systems may
continue producing its Rio MP3 player, affirming the legitimacy of the
Rio and similar devices used to play downloaded digital music.
The Recording Industry Association of America (RIAA), an industry
organization of record companies, had sued to stop Diamond Multimedia
from selling the Rio, claiming the device violates the federal Audio
Home Recording Act of 1992. The law requires that digital audio
recording devices, such as digital audio tape (DAT) players, must be
equipped with a Serial Copyright Management System that can prevent
users from making unauthorized digital copies of recordings. The Rio
contains no such system.
The court ruled that the Rio does not qualify as a "digital audio
recording device" as defined by the Act, as it creates digital
reproductions of recordings only from a computer's hard disk and
cannot directly record from dedicated digital audio media such as
compact discs or DAT cassettes.
The decision eases a burden on Diamond Multimedia and companies that
produce or plan to produce similar MP3 player devices, such as
Creative Labs, RCA, and Thomson Multimedia.
"We're very pleased about it," said Lorraine Comstock, director of
marketing for Diamond's RioPort division. "We believed all along that
the Rio device doesn't fall under the Audio Home Recording Act."
Tensions between Diamond and the recording industry have cooled
somewhat since the lawsuit was filed. Comstock noted that Diamond
Multimedia is currently working alongside RIAA members and others on
the Secure Digital Music Initiative, a joint effort of the recording
and technology industries to build a common secure framework for
distributing music digitally and preventing piracy. And Diamond has
announced that future products in the Rio line will incorporate piracy
prevention technology from Intertrust.
Comstock said the ruling probably won't change any of Diamond
Multimedia's future plans, but may reassure a few companies that were
reluctant to work with Diamond Multimedia while the lawsuit was
pending.
The RIAA, in a brief statement, said it is disappointed with the
ruling. A spokeswoman said the RIAA was not prepared to comment on
whether it will seek to appeal the ruling, or instead lobby Congress
to amend the Audio Home Recording Act or draft new legislation to
cover Rio-like devices.
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