We thought that maybe, just maybe, the recent S50 blessing from the record labels might mean that they were letting off a bit on this whole "satellite radio recording is killing the music industry" thing. Boy were we wrong. Turns out Sirius agreed to pay for one of those snazzy and expensive distribution licenses, similar to what iTunes and Napster have, to allow their users to continue to record songs off of the radio service. XM balked at the fee, since they're already paying a license to play the songs in a radio capacity. That's why they've just been hit with a massive lawsuit for the sale of their Inno player, seeking $150,000 in damages per song recorded by XM customers. XM says they play 160,000 different songs per month, but we're not sure how that translates to this "songs recorded" figure that the record labels want to penalize them for. What we do know is that the amount is pretty extreme, and that XM had better have a good case, or this emerging satellite radio market could lose a major player in a jiffy

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Record labels sue XM over Inno recording