The Audio Home Recording Act (AHRA) was enacted in 1992. Although the legislation was a response to fears of record labels that digital technology would make near perfect copying possible, it was beneficial to consumers because it affirmed the consumers right to make a recording of music for personal use.

The AHRA requires digital audio recording devices, such as the XM inno, made or imported into the US to be designed to prevent serial copying. Manufacturers and importers of digital audio recording devices and media such as blank CDs are required to pay royalties to a fund. Fees collected in the fund will be distributed among record companies, performers and owners of copyright in the music. Royalties are based on a percentage of the transfer price of the device. Copyright owners are required to appoint agents to collect royalties and distribute them among their members. In exchange for these payments, the Act exempts consumers and device manufacturers from copyright infringement liability.

The AHRA might not cover all kinds of home recordings of music. The Act seems to target only those recording devices whose primary purpose is to record music. Thus copying from computers is outside the ambit of the Act.