XM Satellite Radio Holdings Inc. asked a federal judge to throw out a copyright lawsuit filed by the recording industry over a portable radio that also can store recorded music.

The Recording Industry Association of America, (RIAA) which represents record companies, filed suit in May over the Pioneer Inno, claiming the portable device acts as a subscription service by allowing customers to both hear live music and record up to 50 hours of digital content.

In a July 17 filing with the U.S. District Court, Southern District of New York, XM argued that the 1992 Home Recording Audio act protects it from being sued, because the law bans some copyright claims against equipment makers and consumers who make digital music recordings for private use. RIAA is seeking $150,000 in damages for every song copied by XM customers and seeks an injunction against the service offering.

In related news, Sirius settled with the record labels in similar discussions regarding its S50 portable radio back in March. The device, released in October, will store up to 50 hours of Sirius content, as well as play MP3 and WMA files. The unit, however, does not receive live signals on the go.