Judge Moves SoundExchange's $150M Lawsuit Against SiriusXM to New York Court
SoundExchange's $150 million unpaid royalties lawsuit against SiriusXM will proceed in New York after a judge denied the satellite radio company's dismissal request but approved a venue change from Virginia.
The lawsuit, filed in August 2023, alleges SiriusXM artificially inflated webcasting revenue in its satellite and online radio packages, leading to $150 million in withheld royalties. SoundExchange claims SiriusXM's webcasting service generates minimal marginal revenue, suggesting the company's actions extend beyond avoiding duplicate royalty payments.
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US District Judge Patricia Tolliver Giles ruled on July 15 that while the court has specific personal jurisdiction over SiriusXM, the case should move to the Southern District of New York for convenience and justice purposes.
SiriusXM defended its position, stating it has paid over $5 billion in royalties to SoundExchange over the past decade, representing 80% of the statutory royalties distributed to record labels and performers. The company's request for venue change was supported by SVP Catherine Booker, who noted that SiriusXM's headquarters are in New York City, with only five Virginia-based employees unrelated to finance or royalty calculations.
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The case will now continue in New York's Southern District Court, where both parties will present their arguments regarding the alleged unpaid royalties and revenue calculation methods.
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