SIRIUS must be happy about this…or not… They might be next!

The record industry alleged in a civil suit filed in May that XM allows subscribers to listen to, store and replay songs as MP3 files. Devices marketed as “XM + MP3″ players help people trap the music from XM’s broadcasts and then turn them into MP3s. The music labels argue that this infringes on their copyrights.

XM’s stance is that listeners are legally allowed to record music off the radio for personal use under the Home Recording Act of 1992. The judge, however, disagreed. While listeners have for years been allowed to record songs off of standard over-the-air stations, satellite radio is different because the transmission is digital. Music labels assert that a listener of satellite radio can scan through the music library and rapidly record hundreds of songs.

Source: CNET News