SiriusXM has been sued by nonprofit organization SoundExchange for allegedly miscalculating royalties and underpaying artists by over $150 million. SoundExchange claims that SiriusXM improperly allocated revenue to its webcasting arm instead of its satellite radio service to avoid higher fees. The lawsuit accuses SiriusXM of “gaming the system” and artificially inflating the value of its webcasting service. SiriusXM bundles its satellite radio service with its webcasting service, and SoundExchange argues that the company characterizes revenue from the bundled product as webcasting revenue instead of satellite radio revenue. The suit also points to an audit that found SiriusXM has underpaid royalties.In a statement, SoundExchange’s CEO said that SiriusXM has wrongfully exploited the rules and underpaid royalties to artists. The lawsuit comes after SiriusXM prevailed in several cases over the use of pre-1972 sound recordings. Meta Data: {“keywords”:”SiriusXM, SoundExchange, royalties”}
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