Sirius XM Radio
has agreed to pay $150 million to SoundExchange Inc. to settle lawsuits alleging that the satellite-radio big underpaid royalties for recordings.
Sirius XM Holdings
subsidiary stated it might make a one-time fee to SoundExchange, a not-for-profit offshoot of the Recording Business Affiliation of America, on or earlier than July 7, in response to a Monday submitting with the Securities and Alternate Fee. The settlement resolves claims for recordings from Jan. 1, 2007, to Dec. 31, 2017, Sirius stated.
SoundExchange, which collects efficiency royalties from digital music providers on behalf of file corporations and artists, had sued Sirius in 2013, alleging Sirius refused to pay for recordings made earlier than 1972. SoundExchange additionally filed a second lawsuit in December alleging that Sirius underpaid it by understating gross revenues.
Sirius had been setting apart the income generated by these pre-1972 spins earlier than it calculated the royalties it owes rights holders. However SoundExchange believed Sirius ought to have paid royalties on all of its subscription income, with out subtracting older music.
SoundExchange Chief Government
stated in an announcement the group was completely happy to resolve the case and that it might distribute further royalties to artists and rights homeowners.
The settlement comes as Sirius is going through rising bills for the efficiency royalties collected by SoundExchange on behalf of file corporations and artists. The Copyright Royalty Board late final 12 months determined Sirius would pay virtually 41% extra for the music it performs on its satellite-radio service beginning this 12 months.
Sirius, which generated $5.43 billion of income final 12 months, had greater than 33 million subscribers as of March 31.
Shares of Sirius, up 39% up to now 12 months, fell Zero.three% to $7.22 on Monday.
—Anne Steele contributed to this text.
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