Roxio Launches Xingtone Ringtone Maker In US Retail Stores

Press Release: As foreshadowed at the end of March, Xingtone has signed a deal with Roxio to sell the Xingtone Ringtone Maker through retail stores for US$19.95.
"Xingtone Ringtone Maker enables consumers to quickly convert and transfer portions of an audio file from their computer or a CD to their mobile phones using cable-free, over-the-air transmission. The desktop application offers a straight-forward workflow for quickly preparing music or audio voice recordings and is both Windows- and Mac-compatible. Xingtone Ringtone Maker supports more than 100 handsets from budget-buy to high-end devices and works with all major US carriers, including Verizon Wireless, Sprint PCS, Cingular (including AT&T Wireless), and T-Mobile. Consumers may test their phone's compatibility with Xingtone Ringtone Maker at www.Xingtone.com".
I'm a bit concerned about the reaction of the record labels to this. I'm not sure of all the legalities or what constitutes "fair use", but if ringtones sold commercially include a licence fee to the copyright holders I think the labels would consider this to require a licence as well, or be considered piracy. I'm sure both Roxio and Xingtone have taken this into account, but I'm not sure what the difference is...
Related stories:
--Xingtone mStore Lets Everyone Sell Ringtones --Xing Interactive Starts Record Label