SoundExchange Music Choice Lawsuit Sent to Copyright Royalty Board for Resolution
SoundExchange's legal dispute with Music Choice over alleged royalty underpayments has been referred to the Copyright Royalty Board (CRB) for resolution. The case, originally filed in April 2019, centers on Music Choice's "business establishment service" (BES) operations between 2013 and 2016.
SoundExchange logo with black backdrop
The lawsuit claims Music Choice systematically underpaid statutory royalties for its commercial establishment music service, which provided over 50 channels of CD-quality music. According to CRB regulations, SoundExchange is entitled to 12.5% of gross revenues from Music Choice's BES operations during this period.
Key developments in the case:
- An independent audit of Music Choice's royalty statements was conducted through 2018
- The dispute involves alleged improper allocation of fees and payments
- U.S. District Judge Reggie B. Walton has stayed the case pending CRB decision
- A status teleconference is scheduled for June 21st, 2022
- Parties must file a joint status report within 30 days of the CRB's decision
The Copyright Royalty Board currently consists of:
- Judge David Strickler (term ending soon)
- Judge Steve Ruwe
- Interim Chief Judge Suzanne Barnett
In related news, SoundExchange has also initiated audits of 2018-2020 royalty payments from commercial webcasters Audacy and Midwest Communications under statutory licenses.
The resolution of this case could have significant implications for music licensing and royalty payments in the digital music industry, where SoundExchange collected nearly $950 million in domestic non-interactive digital radio royalties in 2020.
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