A federal judge has ruled that record labels may sue XM Satellite Radio over the company’s new devices, which allow consumers to record and store copies of songs played on the radio service as MP3 files. XM’s argument is that the ability to record broadcasts is legally justified by a 1992 law, the Audio Home Recording Act. “We’re pleased that the court has rejected XM’s attempt to misuse the Audio Home Recording Act (AHRA) as a legal loophole,” said Steven Marks, executive vice president and general counsel of the Recording Industry Association of America, which represents the major record labels. “The AHRA was never intended to allow a service offering distributions of music to duck paying creators what they are due.”