The Alliance of Artists and Recording Companies (AARC) have filed a suit against Ford Motors and General Motors. The Alliance of Artists and Recording Companies says that Ford and General Motors are violating copyright due to the disc burning capabilities of their in car recorders.
In a statement on its website the AARC says that it has filed a class action suit against the companies; it will also take legal action against two electronics manufactures, Denson and Clarion, to recover the lost royalties.
The class action is being taken under the Audio Home Recording Act. The statue was first introduced in 1992 so that it would allow consumers to make a copy of their music for personal use. However, under the statute companies that make some types of music recording devices are obliged to pay royalties to the artists, record companies and songwriters.
AARC says that many of the vehicles manufactured by Ford and General Motors contain music systems that were made by Denson and Clarion, yet they have refused to pay royalties.
In a press release, the AARC says that they have tried to settle the issue out of court but the companies have refused to comply with their obligations under AARC.
AARC Executive Director Linda Bocchi said:
“While no one likes litigation, Ford, GM, Denso, and Clarion have stonewalled long enough, and we are determined to collect the royalties our members – and all artists and music creators with rights under the AHRA – are owed.”
Linda Bocchi stated that other companies that make comparable music recorders already pay royalties.