SiriusXM Demands Dismissal and Counter-Damages in $150 Million SoundExchange Royalties Battle
SiriusXM has filed counterclaims against SoundExchange's $150 million unpaid royalties lawsuit, demanding dismissal and seeking damages for alleged overpayments and improper audit practices.
SiriusXM display in car dashboard
At the heart of the dispute is SoundExchange's claim that SiriusXM artificially inflated revenue attributable to webcasting in joint satellite and online radio packages to reduce royalty payments, as different rates apply to each service.
Key points of SiriusXM's response:
- Claims it "unavoidably overpaid" royalties while refining its calculation methodology
- Alleges the auditing firm, Adeptus Partners, wasn't truly independent as required by the Copyright Royalty Board (CRB)
- Argues Adeptus conducted an improper and intrusive investigation while showing partiality to SoundExchange
- States the audit attempted to nullify SiriusXM's direct licenses and force duplicate payments
- Seeks recoupment of excess royalties paid
SiriusXM's legal requests include:
- Dismissal of SoundExchange's complaint with prejudice
- Declaratory judgment that Adeptus doesn't qualify as an independent auditor under CRB regulations
- Damages for counterclaims
- Pre- and post-judgment costs and fees
Stage with performance lighting and mics
The case highlights ongoing tensions between digital service providers and rights collection organizations over royalty calculations and payment methodologies in the evolving digital music landscape.
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