SIRIUS Satellite Radio has come to an agreement with Universal Music Group over the ability to save individual songs to the Sirius S50. Warner Music Group says they have a similar deal in place. The dispute came about over the S50's ability to save individual songs from the satellite radio stream. UMB eLabs president Larry Kenswil even went as far as to call similar devices "cannibalization machines," at an event in New York.

Labels and publishers threatened to sue Sirius for copyright infringement last year over the S50, according to sources.

Sources say Sirius Satellite Radio has agreed to compensate UMG for the service and to avert a potential legal showdown. Consumer charges will not be affected. Warner Music Group's recorded music division has reportedly come to a similar agreement.

The deals are expected to act as a template for the other two major labels, similarly concerned with the timeshifting issue, with whom sources say Sirius is also in active negotiations. These deals put added pressure on XM who will be releasing the Samsung Nexus - which will have similar abilities as the Sirius S50 - as well as the Helix and Inno which also will have the ability to save songs from a satellite stream.

[Billboard.biz]