SonicBlue, the maker of ReplayTV and Rio MP3 players, and announced last Friday that it will file for Chapter 11 bankruptcy protection. The company promises that ReplayTV service will continue: negotiations are underway to sell off that division to Japanese audio manufacturer D & M.
No definite word yet on how this filing will affect ongoing litigation; ReplayTV has been spending upwards of $1 million a month in legal fees defending itself against copyright infringement cases brought by dozens of entertainment companies.