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Music industry loses Internet player legal fight.

Ninth US Circuit Court of Appeals has ruled against Recording Industry Association of America (RIAA) in case brought against Diamond Multimedia, manufacturer of the Rio portable device that plays back MP3 music files. Decision is that the Rio is not primarily a `digital audio recording device' and is therefore not subject to restrictions of the 1992 Audio Home Recording Act. Court ruled that instead the Rio is `consistent with the act's main purpose - the facilitation of personal use'.

RIAA (USA; +1/202 775 0101; www.riaa.com) had sought an injunction

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