Liquid Audio, TI Venture

Music software company Liquid Audio and chip maker Texas Instruments Inc. said they are developing specifications for a portable music downloading device that would ensure copyright protection. The venture marks the first step toward development of products to compete with Diamond Multimedia Systems Inc.’s hot-selling Rio PMP300 device, which can download and store music from the Internet. The Rio is the subject of a legal battle with the recording industry because the device allows music to be replayed without paying artist royalties. Liquid Audio said consumer electronics manufacturers adopting the specifications should be able to develop and distribute devices in the third quarter. Liquid Audio said it is in talks with several electronics manufacturers. TI will deliver a hardware chip set based on a new architecture that licensees can use to build compatible new portable music devices. In addition, Liquid Audio will provide licensees with its software that features copyright protection safeguards.