Soundexchange, Inc. V. Sirius Xm Radio Inc.
Summary: SoundExchange, Inc. has initiated legal proceedings against Sirius XM Radio Inc., citing copyright infringement and underpayment of royalties. SoundExchange alleges that Sirius XM has been exploiting the work of recording artists without providing the legally required remuneration. The lawsuit further contends that Sirius XM has been misrepresenting its revenue from bundled products as "webcasting revenue," when it should be classified as "SDARS revenue," resulting in underpayment of royalties. An independent audit by Adeptus Partners, LLC for the 2018 fiscal year revealed that Sirius XM had allegedly underpaid royalties by millions of dollars, a claim Sirius XM disputes. SoundExchange asserts that Sirius XM's refusal to pay the correct royalties hampers the production of new music and impedes artists' ability to earn a livelihood from their work. The lawsuit also scrutinizes Sirius XM's revenue allocation and pricing strategies, arguing that they fail to accurately represent the value of its webcasting and satellite radio services. SoundExchange alleges that Sirius XM has been lowering prices for its webcasting service while simultaneously raising prices for bundled packages that include both satellite radio and webcasting. SoundExchange further criticizes Sirius XM's use of "constant sum" surveys to allocate revenue to webcasting post-October 2021, arguing that these surveys are flawed and unreasonable. SoundExchange demands that Sirius XM pay the overdue royalty payments, including late fees. The lawsuit seeks damages, late fees, costs, and attorneys' fees, and also requests an injunction against Sirius XM's methodology for excluding webcasting revenue.
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