Duke, here is Diamond's counterclaim and the date of the initial lawsuit.
Wednesday December 2, 1:10 pm Eastern Time
Company Press Release
Diamond Multimedia Files Response to RIAA's Complaint and Files Nine Counterclaims
Diamond Denies all RIAA Claims, Files Counterclaims for Antitrust Conspiracy and Unlawful Business Practices; Press Conference Scheduled for 11 PST
SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 2, 1998-- Diamond Multimedia Systems, Inc., (Nasdaq:DIMD - news), a leader in interactive multimedia and PC entertainment, yesterday filed its response to the Recording Industry Association of America's (RIAA) complaint against the Rio PMP300 portable music player on the grounds that Rio violates the 1992 Audio Home Recording Act (AHRA).
Diamond Multimedia's response, filed with the U.S. Central District Court of California, denies all material allegations stated in the RIAA's complaint filed against the company on October 8, 1998. Diamond Multimedia's response also includes counterclaims for violations of State and Federal antitrust laws and unlawful business practices under California law, asking for treble and punitive damages for intentional misconduct aimed at injuring Diamond.
Diamond Multimedia will host a press conference via telephone today at 11 a.m. PST. The call in number is 888/232-0370 and the participant code is 918805.
''Diamond's counterclaims allege that the lawsuit against Diamond is a product of a conspiracy between the RIAA and others to restrain trade and restrict competition among manufacturers in portable MP3 devices and has, in fact, damaged Diamond's profitability and credibility in a new market area,'' said Andrew Bridges, attorney for Wilson Sonsini Goodrich & Rosati and counsel to Diamond Multimedia. ''Diamond Multimedia responded to the RIAA's concerns and incorporated a Serial Copy Management System into the Rio, even though it was not required to do so. The RIAA's continued pursuit of this lawsuit, in light of Diamond's incorporation of SCMS into the Rio, makes clear that RIAA's real goal is stopping the legitimate MP3 market. Diamond Multimedia's counterclaims lay bare the RIAA's collusive efforts to delay the commercialization of an exciting new technology. In fact, Hilary Rosen, president of the RIAA was quoted in the October 12 issue of the Wall Street Journal as saying, 'The only reason for the action against Diamond is they are jumping the gun to exploit the pirate market instead of waiting and working toward the legitimate market.' This statement, as well as other reckless statements made by top RIAA officials without regard for the truth, has injured Diamond's reputation. MP3 is an open industry standard for legitimate distribution of music and the RIAA's efforts to brand everyone associated with this new open technology as pirates is intended to preserve the RIAA members' control over music distribution.''
Diamond Multimedia is also seeking damages based on the RIAA's intentional interference with the company's prospective economic advantage. Recorded MP3 music is a growing market and Diamond Multimedia's Rio PMP300 is the first widely available, affordable, portable MP3 device. ''Every consumer who wants to listen to recorded MP3 music away from their personal computer is a potential customer for the Rio,'' said Ken Wirt, vice president of corporate marketing at Diamond Multimedia.
''The RIAA is well aware of the potential of MP3 and the likelihood that this audience will consider purchasing a Rio (or other portable MP3 devices) and the lawsuit is based on the RIAA's knowledge of the large market potential and their attempt to stifle it. RIAA's counsel, Hadrian Katz, stated in court, 'the expansion of the MP3 market from just those of us who like to spend our lives in front of computers to people who actually have lives, is really going to create a whole new level of demand for the product.' These statements lead us to believe the RIAA is attempting to impede the growth of the portable MP3 device market and maintain their control over the distribution of music,'' continued Wirt.
Diamond Multimedia has included in its response counterclaims for declarations that the AHRA is void because it violates the First and Fifth Amendments to the U.S. Constitution. ''Music is a form of expression and its communication is protected by the free speech guarantees in the First Amendment to the United States Constitution,'' said Bridges. ''The First Amendment protects not only the content of such expression, but also the means used to disseminate and receive it. The Rio PMP300 player is a communication device used to disseminate and receive MP3 music and other audio content and has countless lawful and legitimate uses. Many musicians and smaller record companies rely on the Internet for publication of their work and the public, in turn, must rely on devices such as Rio to access these works.''
Diamond Multimedia is seeking judgment against the RIAA for threefold the damages it has suffered under anti-trust laws, an order enjoining the RIAA from continuing its unlawful conduct, and an order awarding Diamond its cost of the lawsuit. Diamond has also requested a jury trial. A date for trial has not yet been established.
biz.yahoo.com
Diamond is gonna kick some music ass.
Hiram |
