SiriusXM U.S. Demands $33.9 Million In 'Activation Fees' From Canadian Affiliate
April 26, 2016 at 5:32 AM (PT)
SIRIUSXM CANADA HOLDINGS INC. says that SIRIUSXM's U.S. entity has issued a demand for payment of an additional US$33.9 million as "activation fees" under its license agreement, representing fees the U.S. company contends that the Canadian affiliate owes for licensing from 2005 to the end of JANUARY, 2016.
The demand also includes the assertion that the U.S. company's methodology must be used for calculating "activation fees" from FEBRUARY, 2016 onwards.
The Canadian and American SIRIUSXM companies have been in a dispute over the "activation fees"; SIRIUSXM CANADA, in a release, says that it "is confident in its interpretation of the XM License Agreement and the calculation of the 'activation fees' thereunder, and intends to seek resolution of this matter through binding arbitration under the terms of the XM License Agreement."
The company added that it "does not intend to comment further upon this matter unless and until it deems further disclosure is appropriate or required by law."