AccuRadio has responded to SoundExchange's lawsuit over unpaid royalties, stating the legal action came as a "complete surprise" while both parties were allegedly in payment plan negotiations.

SoundExchange filed the lawsuit in Illinois federal court, claiming AccuRadio's royalty payments ceased in 2018. While the parties reached an agreement in 2020, SoundExchange alleges AccuRadio failed to meet the payment terms. An audit of 2015-2017 royalties revealed additional unpaid fees.

Kurt Hanson, AccuRadio's Founder & CEO, disputes SoundExchange's claims, stating:

• AccuRadio resumed full payments in early 2021
• The company has been a reliable licensee for over 20 years
• They were actively negotiating payment terms when the lawsuit was filed

Hanson highlights the challenging royalty rate structure for web broadcasters:

• Online radio pays significantly higher rates than other formats
• AccuRadio's SoundExchange royalties sometimes reach 45-78% of revenue
• AM/FM stations pay no sound recording royalties
• Satellite radio reportedly pays around 15% of revenue

AccuRadio plans to continue working with SoundExchange, either directly or through legal channels, to establish a fair payment plan for past obligations and resume current payments.

A June 2023 forbearance agreement proposed AccuRadio make an initial down payment, monthly installments, and a final balloon payment in 2017. SoundExchange is now seeking missed statutory and forbearance-agreement royalties, plus a full accounting of royalties from June 2021 onward for auditing purposes.

Related Articles

Previous Articles