XM Radio Canada Sued Over Unpaid Music Royalties

RADIO ONLINE | , , | :am CT

XM Canada is under fire for missing a July 31 deadline to fork over royalty payments amounting to 4.26% of its revenues to cover a period that began all the way back to January, 2005. Accumulated royalties to date were due July 31, with monthly payments to follow. Meanwhile, XM Canada has indicated it will not make payments until 2010.

SOCAN -- the Society of Composers, Authors, and Music Publishers of Canada -- is calling for all of XM Canada's past-due royalties. If necessary, SOCAN will seek an injunction to stop the satcaster from broadcasting music until it shells out the cash.

SOCAN VP/Legal Services C. Paul Spurgeon said the XM Canada was aware it would have pay the royalties before it launched. "SOCAN finds XM's position untenable, particularly in light of the fact that satellite radio service operators knew of their requirement to pay SOCAN royalties well before they began operations in 2005, and after a lengthy Copyright Board hearing that took place in December 2007," said Spurgeon.