SoundExchange has filed a lawsuit against AccuRadio in an Illinois federal court over unpaid royalties, with AccuRadio claiming the legal action came as a complete surprise.

According to SoundExchange, AccuRadio's royalty payments slowed and stopped in 2018. While the parties reached a payment agreement in 2020, AccuRadio allegedly failed to meet its obligations. A subsequent audit of royalties from 2015-2017 revealed additional unpaid amounts.

In June 2023, a structured forbearance agreement was established, requiring AccuRadio to make an initial down payment, monthly installments, and a final balloon payment. SoundExchange is now seeking these missed payments and requesting a full audit of royalties from June 2021 onward.

AccuRadio CEO Kurt Hanson responded that they had been actively negotiating a payment plan with SoundExchange for months. He clarified that AccuRadio resumed full payments in early 2021 and maintained them until recently, contradicting claims that they hadn't paid since 2018.

Hanson highlighted the challenging royalty rate structure facing webcasters, noting that while AM/FM stations pay no sound recording royalties and satellite radio pays approximately 15% of revenue, AccuRadio's SoundExchange obligations have reached 45-78% of its revenues in some months.

AccuRadio expressed commitment to continue working with SoundExchange, either directly or through legal channels, to establish a fair payment plan for past obligations and resume current payments as soon as possible.

The company maintains its dedication to online radio, emphasizing its advantages of ease-of-use, variety, personalization features, and reasonable advertising load, while acknowledging the financial challenges faced by small and independent webcasters in meeting high streaming royalty rates.

Related Articles

Previous Articles