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I would think it would be technically illegal (in the United States) since the obvious reason, but I found this
"the right of consumers to tape songs off the radio has generally been held to be fair use"
http://news.com.com/Tension+grows+be...3-6027079.html
So it is technically legal then?
Isnt XM radio facing a pretty big lawsuit right now?
It is still held to be 'legal', specifically because no one has really raised a tiff about it yet. Public radio that is. Satallite radio companies are begining to get a little heat, only because they are offering a "Tivo" type recording option with some of there receivers now.