SoundExchange has filed a lawsuit against AccuRadio, alleging unpaid royalties from the Chicago-based internet radio platform. The legal action highlights several key issues regarding digital music licensing and royalty payments.

AccuRadio's payment history shows regular royalty payments until 2016, which became irregular and eventually stopped in 2018. While an initial agreement was reached in early 2020 to address missing payments, AccuRadio allegedly failed to comply with the payment terms.

A subsequent audit by SoundExchange covering 2015-2017 identified additional unpaid royalties. In June 2023, both parties entered a forbearance agreement extending to April 2027, which included:

• An initial down payment
• Monthly installment payments
• A final balloon payment in 2027

The agreement designated all of AccuRadio's personal property as collateral, giving SoundExchange authority to collect and sell these assets in case of default. AccuRadio reportedly made only the first three monthly payments before stopping.

SoundExchange is seeking:

• Payment of missing statutory royalties
• Payment of forbearance agreement amounts
• A complete accounting from June 2021 onwards
• A preliminary injunction to prevent AccuRadio from using the statutory license without paying royalties

AccuRadio has maintained its statutory minimum fees for 2024 and continues to operate under the statutory license, though the platform describes its stations as "absolutely 100% free" for listeners. The company has described the lawsuit as a "surprise" in a statement to Digital Music News.

Related Articles

Previous Articles