The Recording Industry Association of America (RIAA) took a hit in federal court today, in an ongoing lawsuit pitting the group against a company that produces multimedia for the Net.
Judge Audrey Collins of the U.S. Central District Court of California in Los Angeles denied RIAA's request to temporarily stop Diamond Multimedia Systems from shipping its Rio PMP300 audio device, which plays compressed music files that originate on the Internet.
The decision means that, for now, Diamond will be able to distribute the device.
Just ten days ago, Judge Collins had temporarily sided with the RIAA, granting the organization a temporary restraining order to halt the sale of Diamond's players but also ordering the RIAA to put up a $500,000 bond to cover potential damage incurred by the company during the ten-day period.
Earlier this month the RIAA filed a lawsuit against Diamond over sales of its Rio player. Diamond's legal team attributed the suit to the RIAA's fear that the device would threaten its control over music profits and distribution.
The RIAA is saying that the Rio violates the American Home Recording Act, legislation that requires digital audio recording devices to implement code systems to curb serial rerecordings of copyrighted music.