SoundExchange Sues SiriusXM for $150 Million in Unpaid Fees

SoundExchange has filed a law suit against SiriusXM over claims that the broadcasting corporation owes them an estimated $150 million in royalties and late fees after intentionally skimping on payments over the course of at least five years. Let’s discuss.

Fill me in: SoundExchange is the top digital royalty collection and distribution agency in the music biz, and according to their calculations, SiriusXM has been sirius-ly underpaying labels and creators. They allege that, since at least as far back as 2018, the defendant has been manipulating federal regulations in order to skirt the Copyright Act and unfairly lowball the amount of money owed for sound recordings used by SiriusXM’s satellite channels.

In return, SoundExchange is seeking compensatory damages and late fees, as well as an injunction preventing SiriusXM from continuing to use inappropriate revenue calculations on its satellite radio payments going forward. Mind you, SoundExchange previously triumphed in a similar legal tussle with SiriusXM a few years ago, winning $150 million in a 2018 settlement.

What they’re saying: “In recent years we have viewed SiriusXM as a willingly lawful and compliant company that shares our desire for a robust streaming marketplace,” said Michael Huppe, president and CEO of SoundExchange. “But SiriusXM has and continues to wrongfully exploit the rules to significantly underpay the satellite royalties that it owes. It is only because our repeated efforts to resolve this dispute have failed that we are forced to litigate…”

SiriusXM’s response: “SiriusXM has simply adhered to [the Copyright Royalty Board’s] clear regulatory framework, using a rigorous, tested and fair methodology…,” reps for the company stated. “Furthermore, SiriusXM has been transparent with SoundExchange from the start on its methodology.”