LOS ANGELES Universal Music Group and XM Satellite Radio Holdings Inc. said Monday they have agreed to settle a copyright infringement lawsuit over a portable music player sold by the broadcaster that enables users to make digital copies of music.
The deal calls for XM to pay Universal Music a fee for every device sold with the ability to make digital copies of individual tracks, a person familiar with the agreement said on condition of anonymity, citing the confidential nature of the matter.
The companies did not disclose the terms of the settlement in their joint statement.
Universal Music, home to artists such as U2 and Jay-Z, was one of the record companies that sued XM in May 2006. The lawsuit claimed XM was essentially selling music without permission because devices such as its Pioneer Inno let listeners make digital copies of music they can transfer from the device and retain.
Online music retailers such as Apple Inc.'s iTunes Music Store have licensing agreements with record labels so they can sell downloads. Such a service is not covered under the compulsory fees satellite radio companies pay for broadcasting music.
The settlement covers all current and future devices with copying features, the companies said.
The deal echoes settlements last year involving lawsuits between the major record labels and Sirius Satellite Radio Inc.