SoundExchange has filed a lawsuit against AccuRadio in an Illinois federal court over unpaid royalties, with AccuRadio claiming the legal action was unexpected.

According to SoundExchange, AccuRadio's royalty payments declined and ceased in 2018. Despite reaching a payment agreement in 2020, AccuRadio allegedly failed to meet the required payments. A subsequent audit of royalties from 2015-2017 revealed additional unpaid dues.

In June 2023, a structured forbearance agreement was established, requiring AccuRadio to make an initial down payment, monthly installments, and a final balloon payment in 2017. SoundExchange is now seeking these missed payments and requesting a full audit of royalties from June 2021 onwards.

Kurt Hanson, AccuRadio's Founder & CEO, states they were actively negotiating a payment plan with SoundExchange when the lawsuit was filed. He emphasizes that AccuRadio resumed full payments in early 2021 and maintains they have been a reliable licensee for over 20 years.

Hanson highlights a key industry challenge: webcasters face disproportionately high royalty rates compared to other broadcast mediums. While AM/FM stations pay no sound recording royalties for terrestrial broadcasts and satellite radio reportedly pays around 15% of revenue, AccuRadio's SoundExchange royalty obligations have reached 45% to 78% of revenues.

AccuRadio expresses commitment to continue working with SoundExchange, either directly or through legal channels, to establish a fair payment plan for past obligations and resume current payments.

The company has recently agreed to pay SoundExchange $210,000 monthly in a temporary payments agreement while litigation continues.

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