SiriusXM hit with $150m lawsuit
August 18, 2023
By Chris Forrester
North American pay-radio operator SiriusXM has been hit with a $150 million (€138m) claim from SoundExchange alleging unpaid royalties and late payments. The action was started in the US District Court for the Eastern District of Virginia.
Specifically, the lawsuit alleges that SiriusXM used an artificially low revenue calculation to determine payments by ascribing “excessive and unjustified value” to its webcasting services sold within bundled packages and removing that value from the satellite radio royalty pool. The action states that SiriusXM is “gaming the system” and manipulating regulations to avoid paying higher royalties to artists and copyright holders, states the suit.
SiriusXM, in its response, said that it has “always respected the rights of creators and artists” and argued that its calculations adhere to Copyright Royalty Board (CRB) regulations.
The satellite broadcaster also said that in the last ten years, it had paid SoundExchange royalties over $5 billion, representing over 80 per cent of the statutory royalties that the PRO distributes to record labels and performers.
“At the heart of today’s suit by SoundExchange are ordinary course disputes – an audit matter and an allocation of revenue from bundled products, specifically where subscribers pay for a package providing both our satellite radio product and the ability to stream our service,” said SiriusXM.
SiriusXM added: “While we are disappointed with the actions taken by SoundExchange today. We remain committed to paying artists fairly for their work and will continue to work collaboratively with SoundExchange, as we have for decades, to ensure they are paid properly under the governing regulations.”