SiriusXM, Major Labels Settle Over Pre-'72 Hits

SiriusXM says it has reached a $210M settlement with major labels to resolve a royalty lawsuit over pre-1972 recordings.

The company will make the payments over a five-year period.

The company came to agreement with Universal, Sony, Warner, and independent ABKCO to settle some uncharted territory, since federal copyright law doesn't predate 1972.

The deal settles past infringements and provides for Sirius XM to play the labels' old songs through 2017. Sirius XM can also make new licenses with them through 2022.

The company says the labels represented to them that they "own, control or otherwise have the right to contract with respect to approximately 80% of the pre-1972 recordings we have historically used."

Cary Sherman

A similar case brought by Flo & Eddie, founders of The Turtles, is separate and unresolved.

“This is a great step forward for all music creators,” said RIAA CEO Cary Sherman.  “Music has tremendous value, whether it was made in 1970 or 2015.  We hope others take note of this important agreement and follow Sirius XM’s example.”

The lawsuit came in the aftermath of a class action filed by Flo & Eddie of The Turtles and aimed to use California state misappropriation laws -- also called common law copyrights -- to win compensation over the use of sound recordings made before such recordings fell under federal copyright protection. For years, record labels accepted publicity and no royalties from terrestrial radio operators, but changes in how music is consumed have changed the dynamic.

Federal copyright law, which has long applied to songwriting rights, was extended to recordings only in 1972. Two years ago, members of the 1960s pop group the Turtles — whose hits included “Happy Together” — sued Sirius XM in three federal courts, saying that their songs from before 1972 were still covered under state laws in New York, California and Florida. The group accused Sirius XM of broadcasting them without permission.