Court Enters $9.7 Million Judgment Against Slacker For Failing To Pay Creators

Succesful Suit.

The UNITED STATE DISTRICT COURT in CALIFORNIA has entered a judgment against SLACKER and its parent company LIVEONE, INC., in a suit filed by SOUNDEXCHANGE to recover royalties owed to performers and rights owners.

On THURSDAY, OCTOBER 13th, the court entered judgment against SLACKER and LIVEONE in the amount of $9.7 million for unpaid royalties due to performers and rights owners under the U.S. government’s SECTION 114 sound recording license. In addition, the court permanently barred the companies from using the statutory license going forward.

The statutory license allows non-interactive digital music streaming services to play music in return for monthly payments at the statutory rate determined by the CCPYRIGHT ROYALTY BOARD. SOUNDEXCHANGE collects statutory payments from more than 3,600 services and distributes monthly royalties to copyright owners, featured recording artists, and non-featured musicians and vocalists.

Commented SOUNDEXCHANGE President/CEO MICHAEL HUPPE, “SOUNDEXCHANGE takes our role in defending fair compensation for creators seriously. Despite a prior agreement, multiple promises, and repeated negotiations, SLACKER and LIVEONE failed to pay properly for the music – on which the companies built their business model. It is regrettable that this step became necessary, but we will not back down when it comes to protecting creators and ensuring they are well-represented and properly paid under the law. We are grateful for the court’s recognition of the value proposition and this judgment in our favor.” 

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