The Alliance of Artists and Recording Companies (AARC) which is responsible for representing the interests of more than 300,000 performers and artists has decided to file a multi billion dollar lawsuit against American car manufacturers Ford and GM and Denso and Clarion, the makers of the radios installed in several models.
The lawsuit alleges that Ford and GM cars contain a technology which enables them to copy music from a CD to the car’s hard drive for later use. The AARC is asking for more than $2,500 in damages for every car produced with such a system installed.
The issue the AARC is focusing on is the Audio Home Recording Act of 1992. The Act specifically prohibits selling a device which is produced for the purpose of copying and storing copyrighted materials. The infotainment systems in the cars in question specifically advertise that inserting a CD into the system will allow them to store the CD for later use.
A computer with a CD-R system is not in violation of the Act because it is not sold as a device for storing and replaying copyrighted materials.
The AARC is saying that the whole lawsuit could have been avoided if the car manufacturers has simply paid a small royalty fee for each device that was stored in a car.
Ford said in a statement:
“We believe we fully comply with all of our contracts. We are currently exploring the case and have nothing further to share at this time.”
GM has not responded with a statement addressing the lawsuit.