SiriusXM Demands Dismissal and Counterclaim Damages in $150M SoundExchange Royalties Battle
SiriusXM has responded to SoundExchange's $150 million unpaid royalties lawsuit with counterclaims and a motion to dismiss, escalating the legal battle between the two companies.
The dispute centers on revenue classification for joint satellite and online radio packages. SoundExchange alleges SiriusXM artificially inflated webcasting revenue to pay lower royalty rates, while SiriusXM claims it actually overpaid royalties while refining its calculation methodology.
SiriusXM display in car dashboard
Key points in SiriusXM's response:
- Requests dismissal with prejudice, arguing the case fails to state a claim and is time-barred
- Claims significant royalty overpayments during their methodology refinement process
- Challenges the independence of SoundExchange's auditor, Adeptus Partners
- Alleges Adeptus conducted an improper and intrusive investigation favoring SoundExchange
- Disputes the methodology behind user surveys and subsequent payments
SiriusXM seeks:
- Dismissal of SoundExchange's original complaint
- Declaratory judgment that Adeptus doesn't qualify as an independent auditor under CRB regulations
- Recoupment of alleged excess royalty payments
- Damages for counterclaims
- Pre- and post-judgment costs and fees
Stage with performance lighting and mics
The case highlights ongoing tensions between digital music services and rights collection organizations over royalty calculations and payment methodologies. This dispute follows other recent legal battles involving SiriusXM's Pandora subsidiary and the Mechanical Licensing Collective over compositional royalties.
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