BMI has filed a legal action against SiriusXM in New York rate court, seeking fair compensation for songwriters, composers, and publishers. The performance rights organization claims SiriusXM is attempting to underpay for music licenses despite the satellite radio service's significant growth and evolution.

The dispute follows two years of unsuccessful negotiations. BMI President and CEO Mike O'Neill emphasizes that SiriusXM's proposed rates are based on outdated valuations that don't reflect the company's current size, digital focus, and revenue growth.

Key points about the legal action:

• Filed on September 12 in New York court
• Covers licensing period: January 1, 2022 through December 31, 2026
• BMI represents over 22.4 million songs and compositions
• Initial rate proposal was made by BMI on May 8, 2023

Under the Consent Decree's Article XIV(A), BMI must quote reasonable fees to music users. If parties can't agree, either can petition the court to evaluate and set appropriate rates. The organization is now asking the court to either confirm their quoted rates as reasonable or establish new fair rates for the BMI repertoire.

The outcome of this case will significantly impact compensation for music creators whose work forms the foundation of SiriusXM's programming and business model.

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