SoundExchange has filed a lawsuit against AccuRadio, alleging failure to pay required royalties for their internet radio platform. The legal action comes after multiple attempts to resolve payment issues through various agreements.

Key Details of the Case:

• AccuRadio made regular royalty payments until 2016
• Payments slowed and stopped completely in 2018
• An initial payment plan was established in early 2020
• A forbearance agreement was reached in June 2023, set to run until April 2027
• AccuRadio allegedly stopped monthly payments after the first three months

SoundExchange's Demands:

• Payment of missing statutory royalties
• Payment of forbearance agreement royalties
• Accounting of royalties from June 2021 onward
• Preliminary injunction to prevent AccuRadio from using the statutory license while payments are missing

Notable Agreement Terms:

• The forbearance agreement defines "collateral" as all of AccuRadio's personal property
• SoundExchange has authorization to collect and sell any collateral in case of default
• SoundExchange can intercept third-party payments meant for AccuRadio

Current Status: AccuRadio has paid its statutory minimum fees for 2024 and continues to use the statutory license. The company called the lawsuit "surprising" in a statement to Digital Music News.

This case joins other ongoing royalty disputes, including SoundExchange's litigation against SiriusXM, highlighting continuing challenges in digital music licensing compliance.

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