Judge Upholds SoundExchange's $150M Lawsuit Against SiriusXM, Moves Case to New York
A federal judge has denied SiriusXM's request to dismiss SoundExchange's $150 million unpaid royalties lawsuit but agreed to transfer the case to New York's Southern District Court.
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SoundExchange filed the lawsuit in Virginia federal court in August 2023, alleging that SiriusXM artificially inflated webcasting revenue in its satellite and online radio packages, resulting in approximately $150 million in withheld royalties. The collection agency claims SiriusXM's actions exceeded normal practices of avoiding duplicate royalty payments.
US District Judge Patricia Tolliver Giles ruled on July 15 that while the court has specific personal jurisdiction over SiriusXM, the case would better serve justice in New York, considering the convenience of parties and potential witnesses.
SiriusXM defended its position, stating it has paid over $5 billion in royalties to SoundExchange over the past decade, representing more than 80% of the statutory royalties the organization distributes to record labels and performers.
The venue change was supported by evidence from SiriusXM's SVP of corporate finance, Catherine Booker, who noted the company's New York City headquarters and limited Virginia presence of only five employees unconnected to finance or royalty calculations.
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