Judge Keeps SoundExchange's $150M Lawsuit Against SiriusXM Alive, Moves Case to New York
SiriusXM faces a significant legal challenge as a judge denied their motion to dismiss SoundExchange's $150 million unpaid royalties lawsuit while agreeing to transfer the case to New York City's Southern District Court.
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The lawsuit, initially filed in Virginia federal court in August 2023, alleges SiriusXM artificially inflated webcasting revenue in its satellite and online radio packages, leading to $150 million in withheld royalties. SoundExchange claims the company's revenue allocation for webcasting services generates "minimal marginal revenue at best."
US District Judge Patricia Tolliver Giles ruled on July 15 that while the court has specific personal jurisdiction over SiriusXM, the case would better serve the interests of justice and convenience in New York.
SiriusXM defended its position, stating they have paid over $5 billion in royalties to SoundExchange over the past decade, representing approximately 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 in the state managing unrelated network operations.
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The case will now proceed in New York's Southern District Court, where both parties will continue their legal battle over the alleged royalty discrepancies.