XM is firing back against the recording industry's lawsuit over the Pioneer Inno's ability to temporarily store copyrighted material, stating rather boldly in an open letter to its customers that "we will vigorously defend these radios and your right to enjoy them in court and before Congress, and we expect to win." Claiming that the record labels "don't get it," XM argues that consumers have always been free to tape over-the-air content from a variety of sources, provided that they restrict those recordings to personal use. What's more, the Inno doesn't even let you transfer recorded content to other devices, and deletes all of your tunes if you drop your XM subscription, so it's already much more restrictive than the recording devices faced by TV and terrestrial radio broadcasters. Instead of actually expecting XM to pay $150,000 for each song recorded by Inno users (which would probably amount to at least several billion dollars), it's more likely that the music industry is using this suit to coax XM into joining rival Sirius in coughing up additional licensing fees. Also, a note to XM PR: despite your suggestion that the record labels are attacking sat radio owners at the expense of a war on the "real" pirates, we think that the industry is both well-prepared and well-equipped for a multi-front conflict.
[Thanks to everyone who sent this in]