General Motors, as well as automotive component manufacturers Denso and Clarion, are being sued by the Alliance of Artists and Recording Companies. The AARC alleges that the four companies have failed to pay royalties under the Audio Home Recording Act.
Billboard reports that the suit claims “that … General Motors, via the technology companies Clarion and Denso respectively, have failed to register their in-vehicle media duplication devices.” The devices in question allow car owners to store music on a built-in hard drive so that it can be played again at a later time.
According to Billboard, the suit (which also includes Ford) “seeks an injunction against the four companies for sale and distribution of the devices, statutory damages of $2,500 per device for three years up to the filing of the lawsuit, all royalties that would have been normally owed by the companies in the three years prior plus 50 percent, and attorneys’ fees.”
GM hasn’t commented on the matter yet, but we will continue to report on the lawsuit as it progresses.