Judge Keeps SoundExchange's $150M Lawsuit Against SiriusXM Alive, Moves Case to New York
SiriusXM faces a $150 million unpaid royalties lawsuit from SoundExchange, with a federal judge denying dismissal but agreeing to move proceedings to New York City.
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US District Judge Patricia Tolliver Giles ruled on July 15 that while the court has specific personal jurisdiction over SiriusXM, the case would be better served in the Southern District of New York, citing "interests of justice and convenience of the parties and potential witnesses."
The dispute originated in August 2023 when SoundExchange filed the lawsuit in Virginia federal court. The collection agency claims SiriusXM artificially inflated webcasting revenue in its satellite and online radio packages, leading to $150 million in withheld royalties.
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 distributed to record labels and performers.
The venue change request was supported by SiriusXM's SVP of corporate finance, Catherine Booker, who noted the company's New York City headquarters and limited Virginia presence, with only five employees managing unrelated network operations.
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The case will now proceed in New York, where both parties will continue their legal battle over the alleged unpaid royalties.
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