SoundExchange Monday filed a lawsuit against SiriusXM radio
to recover a massive underpayment of digital royalties for the period
2007-2012.
During this time, the satellite radio company took a number
of impermissible deductions and exemptions in calculating its royalty payments
to SoundExchange, 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.
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| Mike Huppe |
“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,” said Michael Huppe, president
and CEO, SoundExchange. “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.”
During the same time period that SiriusXM underpaid
musicians for this critical part of their service, the company saw its
subscriber base grow from 17 million to 24 million, and its revenue increase
from $2.06 billion to $3.4 billion – a revenue bump of 65 percent.
SiriusXM is required to pay SoundExchange for the use of the
statutory license, which allows the service to broadcast any commercially
available sound recording. The lawsuit was filed in the United States District
Court for the District of Columbia .
To view the official filing, click here.
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