SiriusXM Demands Dismissal and Counterclaim Damages in $150M SoundExchange Royalties Battle
SiriusXM has filed a strong response to SoundExchange's $150 million unpaid royalties lawsuit, demanding dismissal and seeking damages through counterclaims.
The dispute centers on how SiriusXM calculated royalties for joint satellite and online radio packages. SoundExchange claims SiriusXM artificially inflated webcasting revenue to pay lower royalty rates, while SiriusXM argues they actually overpaid while refining their calculation methodology.
SiriusXM display in car dashboard
Key points in SiriusXM's response:
- Claims the lawsuit fails to state a claim and is time-barred
- Seeks recoupment of alleged excess royalty payments
- Challenges the independence of auditing firm Adeptus Partners
- Argues Adeptus showed bias toward SoundExchange during the audit
- Claims Adeptus attempted to invalidate direct licensing agreements
SiriusXM is specifically requesting:
- Dismissal of SoundExchange's complaint with prejudice
- Declaratory judgment that Adeptus doesn't qualify as an independent auditor
- Damages for counterclaims
- Pre- and post-judgment costs and fees
The case involves complex methodology disputes over user surveys, royalty calculations, and the legitimacy of the audit process. The outcome could have significant implications for how streaming royalties are calculated and audited in the future.
Stage with performance lighting and mics
This legal battle represents a broader industry conflict over streaming royalty payments and calculation methods, with potential impacts on future digital music licensing arrangements.
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