Copyright Royalty Judges Up SiriusXM Royalty Rates

Raises Royalty Rates

The Copyright Royalty Judges issued their Initial Determination of Royalty Rates and Terms for Satellite Audio Radio Services and Preexisting Subscription Services late YESTERDAY (12/14).

The Judges have determined that for the period JANUARY 1 through DECEMBER 31, 2022, Satellite Radio shall pay royalties, "aggregated for the statutory licenses under sections 112 and 114 of the Copyright Act at the rate of 15.5 percent of Gross Revenues, as that term is described in the accompanying SDARS regulations."

During the same rate period, Preexisting Subscription Services, "shall pay for the same licenses aggregate royalties of 7.5 percent of Gross Revenues, as that term is described for PSS."

musicFIRST Responds

MUSICFIRST Executive Dir. CHRIS ISRAEL commented on the decision, "The rate SIRIUSXM will pay artists may have changed but the facts surrounding the company’s sweetheart deal have not. This decision virtually guarantees the company will pay an unfair, below-market royalty rate for the music that it plays well into the future. SIRIUSXM has now benefited from a below-market rate at the expense of music creators for nearly two decades, during which time they have merged with their only competitor, taken total control of the satellite market and dragged legacy artists through the courts rather than pay them what they deserve. 

“It’s time our laws value music the same regardless of how we listen to it. Congress has such an opportunity by passing the ‘Fair Play Fair Pay Act.’ Under the legislation, all forms of radio, regardless of the technology or platform used, would pay a fair market value for music performances. The legislation would end SIRIUSXM’s below-market rate and apply the free market ‘willing buyer, willing seller’ standard across all platforms. The legislation would also restore fairness for pre-72 recordings and end AM/FM radio broadcasters’ special treatment by requiring them to fairly compensate music creators."

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