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Universal Music Group and XM Satellite Radio Holdings Inc. said Dec. 17 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.

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