SoundExchange Sues AccuRadio Over Unpaid Digital Streaming Royalties and Missed Payments

SoundExchange Sues AccuRadio Over Unpaid Digital Streaming Royalties and Missed Payments

By Marcus Delano Thompson

December 2, 2024 at 08:53 AM

SoundExchange has initiated legal action against AccuRadio, seeking unpaid royalties for non-interactive digital streaming. The lawsuit, filed in an Illinois federal court, alleges a pattern of missed payments dating back to 2016.

SoundExchange logo on black background

SoundExchange logo on black background

Key Details of the Case:

  • AccuRadio made required royalty payments until 2016, with some being "untimely"
  • Payments reportedly slowed and stopped entirely in 2018
  • An initial settlement agreement was reached in early 2020
  • A forbearance agreement was established in June 2023, extending to April 2027
  • AccuRadio allegedly stopped monthly payments after the first three months

SoundExchange's Demands:

  1. Payment of missing statutory royalties
  2. Payment of forbearance-agreement royalties
  3. Accounting from June 2021 onward
  4. Preliminary injunction to prevent AccuRadio from using the statutory license
  5. Rights to collect "all personal property" of AccuRadio as collateral

Current Status: AccuRadio has paid its statutory minimum fees for 2024 and continues to use the statutory license while the case proceeds. They have described the lawsuit as a "surprise" in their statement to Digital Music News.

Stage with performance lighting and mics

Stage with performance lighting and mics

Recent Development: AccuRadio has agreed to pay $210,000 monthly in temporary payments while the litigation continues, demonstrating an effort to address the situation while legal proceedings unfold.

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