XM Satellite Radio and Sony BMG Music Entertainment reached agreement on a lawsuit brought by Sony against XM over its Pioneer Inno, the portable satellite radio with advanced recording features.
The companies did not disclose terms of the settlement.
Sony BMG is the third music company to resolve a dispute with XM regarding radios with such recording functionality. Similar agreements were announced in December with Universal Music Group and Warner Music Group. Sony BMG has withdrawn as a party to the complaint filed by the major record companies in May 2006.
The dispute centered around the Inno’s ability to record and store content. XM said the content stayed on the device and could not be moved to another device. The music groups countered that a subscriber could isolate and record a song out of the order it aired, equivalent to an illegal download. Therefore, the labels said, they should get more money in royalties from XM. In the suit, the RIAA sought $150,000 in damages for every song copied by XM subscribers.