AccuRadio has responded to SoundExchange's recent lawsuit over unpaid royalties, stating the legal action came as a "complete surprise" while negotiations were still ongoing.

SoundExchange filed the lawsuit in Illinois federal court, claiming AccuRadio's payments ceased in 2018. While both parties reached a settlement in 2020, SoundExchange alleges AccuRadio failed to meet the agreed payment terms. An audit of 2015-2017 royalties revealed additional unpaid fees.

Kurt Hanson, AccuRadio's Founder & CEO, disputes SoundExchange's claims, stating:

• The company has been reliably paying royalties for over 20 years
• Full payments resumed in early 2021
• Recent payment negotiations were believed to be progressing positively

The core issue, according to Hanson, lies in disproportionate streaming royalty rates:

• Online radio pays significantly higher rates than traditional media
• AccuRadio's SoundExchange royalty obligations have reached 45-78% of revenue
• AM/FM stations pay no sound recording royalties
• Satellite radio reportedly pays around 15% of revenue

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

A June 2023 forbearance agreement proposed an initial down payment, monthly installments, and a balloon payment. SoundExchange now seeks missed statutory and forbearance-agreement royalties, plus a full accounting of royalties from June 2021 onward for auditing purposes.

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