XM Satellite Radio settled the last of the lawsuits brought against it over the company's controversial Inno device. Merlin, an organization representing many independent labels, settled for $3.6 million.
The major labels, which originally brought the suit, settled their lawsuits back in 2007 and 2008.
The Inno, made by partner Pioneer, is a portable MP3 player and satellite radio receiver that allowed users to record songs from the XM feed. The recording themselves were not a problem, as plenty of XM units allow users to save several hours worth of programming. The lawsuits began because XM allowed users to ID and save individual tracks, and place them into playlists along with tracks from users' own MP3 library.
These saved tracks could not be transferred off the device, and each had a "buy" button. However the labels still felt this usage was both outside of the scope of their licensing agreements and was a threat to music buying, hence the lawsuits.