Diamond Countersues Recording Group

Diamond Multimedia Systems Inc. filed a lawsuit against the Recording Assn. of America, a trade group representing the music industry’s six major companies, accusing them of violating antitrust laws and conducting unlawful business practices. The San Jose-based manufacturer filed the claim in Los Angeles federal court in response to a suit filed last month by the association, which unsuccessfully tried to block the release of Diamond’s Rio portable MP3 player--a hand-held device that can download and play back pirated songs from the Internet. Diamond’s counterclaim alleges that the association’s suit damaged Diamond’s creditability and was the result of a conspiracy between record companies to restrain trade.