Judge allows music industry to sue XM Satellite

A judge has ruled that the music industry is free to go ahead with a lawsuit against XM Satellite Radio, the company accused of allowing customers to store songs without paying for them.

The finding, made Friday by U.S. District Court Judge Diane Batts in New York, opens the door for music labels such as Atlantic Recording and Capitol Records to press their case against the satellite radio broadcaster.

The record industry alleged in a civil suit filed in May that XM allows subscribers to listen to, store and replay songs as MP3 files. Devices marketed as "XM + MP3" players help people trap the music from XM's broadcasts and then turn them into MP3s. The music labels argue that this infringes on their copyrights.

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