SiriusXM Countersues SoundExchange Over $150 Million Royalties Dispute, Demands Dismissal
SiriusXM has responded to SoundExchange's $150 million unpaid royalties lawsuit with counterclaims and a motion to dismiss, escalating the legal battle between the two companies.
The dispute centers on how SiriusXM calculated royalties for joint satellite and online radio packages. SoundExchange alleges that SiriusXM artificially inflated webcasting revenue to reduce royalty payments, as different rates apply to satellite versus online streaming.
SiriusXM display in car dashboard
Key points in SiriusXM's response:
- Claims it actually overpaid royalties while refining its calculation methodology
- Seeks recoupment of excess royalties paid
- Challenges the independence of SoundExchange's auditor, Adeptus Partners
- Alleges Adeptus conducted an improper investigation at SoundExchange's behalf
- Questions the validity of the audit under CRB regulations
SiriusXM is requesting:
- Dismissal of SoundExchange's original complaint with prejudice
- Declaratory judgment that Adeptus does not qualify as an independent auditor
- Damages for counterclaims
- Pre- and post-judgment costs and fees
Stage with performance lighting and mics
The case highlights ongoing tensions between digital music services and royalty collection organizations regarding payment calculations and audit procedures. The outcome could set important precedents for future royalty disputes in the digital music industry.
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