SoundExchange's legal battle with Music Choice over unpaid royalties has been referred to the Copyright Royalty Board (CRB) for resolution. The dispute stems from a 2019 lawsuit where SoundExchange accused Music Choice of systematically underpaying statutory royalties for their business establishment service (BES) between 2013 and 2016.

The lawsuit alleges that Music Choice improperly allocated fees and payments for its BES operations, which provided over 50 channels of CD quality music to commercial establishments. According to CRB regulations, SoundExchange is entitled to 12.5% of gross revenues from these operations during the period in question.

U.S. District Judge Reggie B. Walton has stayed the case pending the CRB's decision. The three-judge Copyright Royalty Board, currently consisting of Judge David Strickler, Judge Steve Ruwe, and interim Chief Judge Suzanne Barnett, will oversee the matter.

Key developments:

• A status teleconference is scheduled for June 21st, 2022
• Parties must file a joint status report within 30 days of the CRB's decision
• SoundExchange recently announced additional audits of commercial webcasters Audacy and Midwest Communications for 2018-2020 royalty payments

This case highlights ongoing efforts to ensure proper royalty payments in the digital music industry, where SoundExchange collected nearly $950 million in domestic non-interactive digital radio royalties in 2020 alone.

Related Articles

Previous Articles