Sirius Radio Manufacturer Xact sues Sirius for $48 million
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Just coming in over the wire:
-Sirius: Radio Maker Alleges Pact Breach, Seeks $48M Damages
-Radio Maker Alleges Sirius Withheld Info On FCC Inquiry
Sirius Satellite Radio hardware manufacturer US Electronics, publicly known as Xact, has sued Sirius for $48 million, saying that Sirius has not paid monies due, interfered with US Electronics establishing relations with other companies, and also that Sirius withheld information about last year’s FCC inquiry into the FM transmitters in radios.
Sirius, is claiming that its contract bars them from paying $41 million of the lawsuit to US Electronics due to limitation of liability provisions in the contract that was signed, and that they will fight this. The case will go to arbitration.
It looks like this could be the reason that US Electronics stopped producing radios last year, and also why a company called “Advanced Global Technology” started producing the Sportcaster for XM last year that looked similar to many of the other Xact radios, including the ReGo prototype that they designed for Sirius. While we have never confirmed it, Advanced Global Technology is similar to Xact, in that both websites never reference their parent company, and the radios are strikingly similar.




EDIT: NM, don't guess it's XACT. by SISO
Edit: I just checked Xacts website, They still have the ReGo up!
O by the way, they make crappy radios anyway by SiriusS50vr
that would never fly.. their are hundreds of working prototype products revealed that never see the light of day. by soxnationonline
EDIT: NM, don't guess it's XACT.
The XACT products that were released weren't that bad--they easily had the strongest FM transmitters of any satellite radio product. The Visor was super-powerful, as I recall. by zaj
lol, isnt that one of the reasons Xact is Suing SIRIUS, because of the strong FM transmitters? that doesnt seem fair if they produced the radios with the strong FM transmiters by SiriusS50vr
The XACT products that were released weren't that bad--they easily had the strongest FM transmitters of any satellite radio product. The Visor was super-powerful, as I recall.
Obviously, this is all speculation, but XACT is probably arguing that Sirius had some sort of duty under their agreement to inform XACT when Sirius became aware of the FCC investigation into the FM transmitter strength. If Sirius didn't tell XACT what was going on, and XACT kept cranking out receivers with the powerful FM transmitters that couldn't be sold in the future, then Sirius knew that XACT was wasting time, material, and labor costs.
Sirius should bring a counterclaim based on damages from the ReGo debacle. by zaj
Didn't someone on SBS actually get to play around with a model ReGo, and said it was great? by zaj
Didn't someone on SBS actually get to play around with a model ReGo, and said it was great?
I have heard rumors that SIRIUS pressured Xact to hold off with the ReGo, and subsequently reverse engineered it. They kept asking for evalution units, borrowed much of the technology and then launched the S50. For some reason, they didn't want Xact to steal their thunder with the ReGo and wanted stores to have the S50 first. We all see how that ended. The S50 manufacturer, Humax, did a poor job with the quality.
The ReGo was a beautiful unit, had great MP3 functionality via a flash card and live recording abilities to boot. The headphone antenna was so powerful, I could even get a signal indoors in the middle of our house. I've never been able to reproduce that reception with other SIRIUS radios.
Xact/US Electronics was a great partner and had a bigger booth presence for radios at CES than SIRIUS did in 2004/2005. They went all out in 2005 with the ReGo, complete with Vespa giveaways and lots of friendly reps/models.
It's too bad to see SIRIUS alienate a company that took a big risk at a time when SIRIUS was still gaining respect and market share.
Jeff by TulaneJeff
I have heard rumors that SIRIUS pressured Xact to hold off with the ReGo, and subsequently reverse engineered it. They kept asking for evalution units, borrowed much of the technology and then launched the S50. For some reason, they didn't want Xact to steal their thunder with the ReGo and wanted stores to have the S50 first. We all see how that ended. The S50 manufacturer, Humax, did a poor job with the quality.
The ReGo was a beautiful unit, had great MP3 functionality via a flash card and live recording abilities to boot. The headphone antenna was so powerful, I could even get a signal indoors in the middle of our house. I've never been able to reproduce that reception with other SIRIUS radios.
Xact/US Electronics was a great partner and had a bigger booth presence for radios at CES than SIRIUS did in 2004/2005. They went all out in 2005 with the ReGo, complete with Vespa giveaways and lots of friendly reps/models.
It's too bad to see SIRIUS alienate a company that took a big risk at a time when SIRIUS was still gaining respect and market share.
Jeff
It's dissapointing to see Sirius at odds with a manufacturer who has produced good quality units at extremely exceptional price points. by merman_93