SiriusXM Fights Back Against SoundExchange's $150M Royalty Lawsuit, Demands Dismissal and Counter-Damages
SiriusXM has filed a strong response to SoundExchange's $150 million unpaid royalties lawsuit, including counterclaims and demanding a dismissal of the case. The dispute centers on revenue classification for joint satellite and online radio packages.
SiriusXM display in car dashboard
Key Points of SiriusXM's Response:
- Refutes SoundExchange's allegations about artificial inflation of webcasting revenue
- Claims the case should be dismissed with prejudice
- Argues they actually overpaid royalties while refining calculation methods
- Disputes the independence of auditing firm Adeptus Partners
- Seeks recoupment of excess royalties paid
The Audit Controversy:
SiriusXM alleges that Adeptus Partners, the accounting firm hired by SoundExchange, showed bias throughout their audit of the 2018 royalty statements. They claim Adeptus:
- Failed to maintain independence as required by CRB
- Attempted to nullify SiriusXM's direct licenses
- Conducted an unnecessarily intrusive investigation
SiriusXM's Demands:
- Dismissal of SoundExchange's original complaint
- Declaratory judgment that Adeptus doesn't qualify as an independent auditor
- Damages for counterclaims
- Pre- and post-judgment costs and fees
Stage with performance lighting and mics
The case highlights ongoing tensions between digital music services and rights collection organizations over royalty calculations and payment methodologies. The outcome could set important precedents for future royalty disputes in the digital music industry.
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