New Music Industry Briefing For Wednesday May 17, 2006

– On Tuesday the recording industry sued XM Satellite Radio alleging that its Inno device that can store music infringes on copyrights and turns a passive radio experience into a digital download service like iTunes. (Reuters)

– A Pali Research study shows that growth in digital downloads may be loosing steam in the second quarter. Citing Nielsen Soundscan data, "In 2006, despite the aggregate year-to-date strength in digital tracks, weekly performance continues to decline, with every week during the second quarter below the year-to-date average".  Read a PDF of the report here. (Digital Music News)

– Apple Down/Creative Up. Apple shares fell 4.1% to $64.98 after Creative Technology filed a complaint with the U.S. International Trade Commission claiming Apple had infringed on Creative’s patents for some music-playing devices. Creative shares rose 5.3% to $5.75. (Mercury News)