XM Satellite Radio and Universal Music Group resolved a lawsuit brought by UMG over the Pioneer Inno, a portable satellite receiver that can record programming, including music.
The companies did not disclose terms of the deal, but said it covers all receivers in the XM product line that include recording capability.
The Inno allows users to select and save a certain amount of songs from the satellite radio channels on the device. UMG and the other labels argue that “cherrypicking” songs is similar to a download and is outside the scope of XM’s licensing agreement.
As part of the agreement, the companies said UMG becomes the first music company to reach a multi-year deal covering all XM radios with “advanced recording functionality,” including both those currently available as well as future product releases. In addition, UMG will withdraw as a party to the complaint filed by the major record companies against XM in May 2006.
The satcaster hopes to soon resolve the complaint filed by the other major record labels.