SoundExchange has filed a lawsuit against Chicago-based internet radio platform AccuRadio over alleged unpaid royalties. The legal action, filed in an Illinois federal court, details a complex history of payment issues dating back to 2016.

Key Details of the Dispute:

• AccuRadio made required royalty payments until 2016, though some were "untimely"
• Payments reportedly slowed and stopped completely in 2018
• An early 2020 agreement to resolve missing payments was unsuccessful
• A June 2023 forbearance agreement was established, set to run until April 2027
• AccuRadio allegedly ceased monthly payments after the first three months

SoundExchange's Demands:

• Payment of missing statutory and forbearance-agreement royalties
• Full accounting from June 2021 onward
• Preliminary injunction to prevent AccuRadio from using the statutory license without paying royalties
• Rights to collect "all personal property" of AccuRadio as collateral in case of default

Current Status: AccuRadio has paid its statutory minimum fees for 2024 and continues to use the statutory license. The platform maintains its stations are "absolutely 100% free" for listeners.

The lawsuit follows similar actions by SoundExchange against other digital platforms, including ongoing litigation with SiriusXM, as part of its mission to collect U.S. recording royalties for non-interactive digital platforms.

AccuRadio has responded to the filing, describing it as a "surprise lawsuit" in a statement to Digital Music News.

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