A class action lawsuit has been filed against Sirius XM regarding their controversial "US Music Royalty" fee, which adds 21.4% to subscribers' monthly costs beyond the advertised price.

Key Points of the Lawsuit:

• The fee affects approximately 33.9 million subscribers
• In 2023, Sirius XM collected $1.36 billion in music royalty fees, exceeding their net profit of $1.26 billion
• The company advertises subscription prices with "plus fees and taxes" in smaller print
• Plaintiffs argue that music licensing costs should be included in the base subscription price

Legal Arguments:

The lawsuit contends that:

• Reasonable consumers expect advertised prices to include fundamental service costs
• No other music services charge separate royalty fees above plan prices
• Sirius XM presents the fee as a government-mandated charge, when it's company-created
• The fee is misleadingly bundled under "fees and taxes"

Current Status:

• Lawsuits have been filed in multiple states, including Washington, Florida, Oregon, and New York
• Plaintiffs seek an injunction requiring Sirius XM to include the royalty fee in advertised prices
• Additional damages for affected subscribers will be determined in court

While Sirius XM argues that music royalty rights are established by Congress through the Copyright Act, the lawsuit maintains that copyright compliance costs should be incorporated into the basic subscription price rather than treated as an additional fee.

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