CD Radio Protects Intellectual Property
BUSINESS WIRE
NEW YORK, N.Y.--(BUSINESS WIRE)--Feb.
22, 1999--CD [ Radio Inc. ]
(Nasdaq: CDRD), the satellite-to-car radio
broadcaster, today confirmed reports that it had initiated a patent infringement
suit against XM Satellite Radio. CD Radio holds various patents which govern
aspects of digital radio broadcasting from satellites. XM is a private company
which holds the other FCC license for satellite radio broadcasting in the U.S.
The suit, filed in the Southern District of New York, asserts that XM's
proposed transmission system would infringe on each of three CD Radio
patents. The three patents: #5592471, #5485485, and #5319673, are among
eight patents owned by CD Radio. The suit seeks an injunction to prevent XM
from constructing this system.
CD Radio is building a digital satellite radio system for the broadcast of 100
channels of music and other programming to motorists throughout the United
States. Scheduled for launch in late 2000, CD Radio will broadcast 50
channels of commercial-free music and 50 channels of news, sports and
entertainment programming for a total monthly subscription fee of $9.95.
CD Radio's programming will originate at its National Broadcast Studio in
New York City and be uplinked to the Company's three satellites. These
satellites are currently under construction at Space Systems/Loral and are
scheduled for launch beginning in early 2000.
The majority of CD Radio's planned programming formats are generally
unavailable on radio stations in any single market. Furthermore, unlike
conventional stations, which have an average range of approximately 30 miles
before reception fades, CD Radio's signal is designed to cover the continental
United States coast to coast. Music channels will be commercial-free, unlike
conventional stations which interrupt their broadcasts with up to 18 minutes of
commercials during every hour of music programming. More information
about CD Radio is available at www.cdradio.com.
Any statements that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance (often, but not
always, through the use of words or phrases such as "will likely result," "are
expected to," "will continue," "is anticipated," "estimated," "intends," "plans,"
"projection," and "outlook") are not historical facts and may be forward-looking
and, accordingly, such statements involve estimates, assumptions and
uncertainties which could cause actual results to differ materially from those
expressed in the forward-looking statements. Accordingly, any such
statements are qualified in their entirety by reference to the factors discussed
in CD Radio's Annual Report on Form 10-K for the year ended December 31,
1997. Among the key factors that have a direct bearing on CD Radio's results
of operations are the potential risk of delay in implementing CD Radio's
business plan; increased costs of construction and launch of necessary
satellites; dependence on satellite construction and launch contractors; risk of
launch failure; unavailability of CD Radio reception devices; unproven market
and unproven applications of existing technology; and CD Radio's need for
additional substantial financing.
(Copyright 1999)
_____via IntellX_____
Publication Date: February 22, 1999
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