Judge OKs $150M SoundExchange vs. SiriusXM Lawsuit Move to New York Court
A judge has recently ruled on SoundExchange's $150 million lawsuit against SiriusXM, denying the satellite radio company's dismissal request while approving a venue change to New York City.
NYC skyline, orange sunset view
The lawsuit, initially filed in Virginia federal court in August 2023, accuses SiriusXM of manipulating revenue attributions for webcasting services within its satellite and online radio packages, allegedly resulting in $150 million of unpaid royalties.
US District Judge Patricia Tolliver Giles stated that while the court has specific personal jurisdiction over SiriusXM, moving the case to the Southern District of New York better serves the interests of justice and convenience for all parties involved.
SiriusXM defended its position, noting that they've paid over $5 billion in royalties to SoundExchange over the past decade, representing approximately 80% of the statutory royalties distributed to record labels and performers.
The venue change was supported by evidence from SiriusXM's SVP of corporate finance, Catherine Booker, who highlighted that the company's headquarters are in New York City, with only five Virginia-based employees working in unrelated network operations.
Stage with performance lighting and mics
SoundExchange, responsible for collecting royalties for recording use on non-digital platforms, maintains that SiriusXM's webcasting service generates minimal marginal revenue, suggesting the company's revenue allocation practices go beyond avoiding double payment of royalties.
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