New York Post: This doesn’t look good. According to this article, the RIAA (Recording Industry Association of America) has been raising a suspicious eyebrow at the two latest MP3/Satellite Radio devices - the Sirius S50 and the Samsung neXus - being introduced by XM and SIRIUS this fall. Apparently the RIAA doesn’t like the fact that you can record the music and listen to it later - essentially reducing the revenue generated by per-per-download services like iTunes.

As a result, things could get ugly for both XM and SIRIUS because the seven year music licensing contracts are coming up for renewal at the end of this year. The RIAA gave the satellite radio industry their current music licensing contracts at “below market rates” as a means to help jumpstart the industry. But apparently the RIAA is taking these devices as a slap in the face, and could very well bump those licensing fees much higher.

A lawsuit also isn’t out of the question (or out of character for the RIAA), If XM and SIRIUS don’t modify the devices to appease the RIAA gestapo then “they can’t do this without being sued,” says a high-level music exec involved in the discussions.

Ugh.