Recording Industry Ass'n of America, Inc. v. Diamond Multimedia Systems, Inc.

ORDER RE: Plaintiffs Motion for Preliminary Injunction

Plaintiffs Motion for a Preliminary Injunction came on for hearing on October 26,1998. After reviewing the materials submitted by the parties, the arguments of counsel, and the case file, the Court hereby DENIES Plaintiffs’ Motion for Preliminary Injunction.

I. Factual Background

This action arises from the efforts of Plaintiffs RECORDING INDUSTRY ASSOCIATION OF AMERICA, INC. and ALLIANCE OF ARTISTS AND RECORDING COMPANIES (“Plaintiffs”) to preliminarily enjoin alleged violations of the Audio Home Recording Act of 1992, 17 U.S.C. §§ 1001 et seq. (“AHRA”) by Defendant DIAMOND MULTIMEDIA SYSTEMS, INC. (“Defendant”).

The material facts of this case are undisputed. Plaintiffs are trade organizations representing the creators, manufacturers, and distributers of over ninety percent of all legitimate sound recordings. Defendant is a leading manufacturer of computer products, specializing in products to improve multimedia, audio, graphics, video, and communications uses of personal computers. Defendant is currently manufacturing — and intends to distribute — a device it calls the Rio PMP 300 (the “Rio”). The Rio is a lightweight,…