SoundExchange Files Lawsuit Against SiriusXM for $150M

RADIO ONLINE | Wednesday, August 16, 2023 | 4:13pm CT

SoundExchange

Digital royalty collection and distribution agency SoundExchange has taken legal action against satellite streaming service SiriusXM, seeking to recover an estimated $150 million in unpaid royalties and late fees under the Copyright Act reports Variety. The lawsuit, filed with the United States District Court for the Eastern District of Virginia, alleges that SiriusXM manipulated federal regulations to artificially lower the calculation of creator royalties.

The suit claims that SiriusXM improperly valued its webcasting component within bundled packages, resulting in reduced satellite radio royalty payments. SoundExchange also alleges that an audit revealed improper deductions in SiriusXM's calculation of satellite radio royalties.

SoundExchange is seeking compensatory damages, late fees for years of underpayments, and an injunction to prevent SiriusXM from using inappropriate revenue calculations in the future.

SoundExchange President and CEO Michael Huppe told Variety, "SiriusXM has and continues to wrongfully exploit the rules to significantly underpay the satellite royalties that it owes."

In response, a SiriusXM representative defended the company's actions, asserting that they have adhered to regulatory frameworks and have paid over $5 billion in royalties over the past decade. The statement highlighted that the dispute revolves around ordinary course matters, such as audits and revenue allocation for bundled products.

SiriusXM stated that it remains committed to paying artists fairly and will continue to collaborate with SoundExchange to ensure proper payment under governing regulations.