SoundExchange Sues SiriusXM For Royalty Underpayment
August 26, 2013 at 4:06 PM (PT)
SOUNDEXCHANGE is taking SIRIUSXM radio to court, alleging a massive underpayment of digital royalties for the period 2007-2012. The monitoring agency claims that the satcaster took a number of impermissible deductions and exemptions in calculating its royalty payments, including deducting for pre-1972 sound recordings and certain channel packages containing music.
In addition, SIRIUSXM failed to pay the legally required fees due for several late payments within the same period. SoundExchange believes SIRIUSXM's underpayments amounted to $50 to $100 million or more, which it is seeking to recover on behalf of the artists and labels it represents.
"SIRIUSXM is knowingly withholding royalties from the creators who bring life to their service, even as the company continues to experience unprecedented and explosive growth," SOUNDEXCHANGE Pres./CEO MICHAEL HUPPE. "We cannot sit by and watch this multi-billion dollar company reap record profits from the creative contributions of artists and labels without paying them everything they deserve."