SoundExchange Appeals Dismissal ofโค SiriusXM Royalties Lawsuit
NEW YORK – SoundExchange is appealing a recent โขrulingโฃ that dismissed its โฃlawsuit against siriusxm, alleging the satellite radio giant owes over $400โค millionโ in unpaid performance royalties.โ The appeal,filed with the Second Circuit Court of Appeals,challenges a decision by Judge Loretta A. Buchwald that questioned SoundExchange’s standing to directly โขsue forโค royalties.
The โcase โคmarks the first time a court has weighed โฃin on SoundExchange’sโค ability โคto โpursue royalty collection through litigation. For over aโ decade, soundexchange has utilized lawsuits to recover ample sums-totaling hundreds of millions of dollars-from broadcasters like SiriusXM and streamingโ services includingโ Slacker andโ Napster.
Judgeโ Buchwald’s ruling, delivered โweeksโ ago, prompted Sonos toโ file a motion to โdismiss its own pending royaltiesโ lawsuit against SoundExchange, citing the SiriusXM โcase rationale.
SoundExchange contends the decision represents “an erroneous ruling and flawed interpretation” โขof the Copyright Act. In a statement released friday,โ the organization argued that Congress intended for the statutory license to include theโฃ ability for its administrator to pursueโ litigation when digital music services fail to fulfillโ their obligations.”As Congress surely realized in creating the statutory license, some licensees will seek any available means to โฃavoid โpaying โartists for the full value of their work โto maximize โคprofitability,” SoundExchange stated. “For the statutory license to function properly, โคSoundExchange fully believes Congress intendedโฃ that โthe ‘enforcement’ power clearly granted in the statute must necessarily includeโ the ability of its administrator to bring litigation claims when โฃdigital music services fail to meet their obligations under โthe law.”
SoundExchange maintains its โcommitment to securingโ fair compensationโข for artists and rights owners and intends to vigorously argue its case in court.
The โlawsuit, initially brought in 2023, accuses SiriusXM of employing “manipulative bundling” to withhold over $150 million โฃin performance royalties. โคSoundExchange โalleges this “faulty methodology” has continued, increasing the total owed to over $400 million.SiriusXM denies all claims.
A request for comment from SiriusXM regarding the appeal was notโ immediately โreturned.
