Soundexchange Claims It Isn't Allowed To Sue SiriusXM

SoundExchange has issued a statement criticizing a recent ruling by District Judge Hon. Naomi Reice Buchwald of the Southern District of New York, which barred the organization from suing SiriusXM on behalf of the recording artists and rights owners it represents.

SoundExchange stated, “We respectfully disagree with Judge Buchwald’s interpretation of the law. Congress designed the statutory license to streamline the music licensing process, including empowering SoundExchange, as the designated collective, to enforce it. This ruling undermines that purpose. It’s only logical that an entity tasked with managing a statutory license should have the authority to sue those who violate it.”

The decision follows SoundExchange’s lawsuit against SiriusXM for allegedly withholding over $150 million in royalties, a figure now exceeding $400 million. The lawsuit claims SiriusXM deliberately inflated the value of its webcasting service to reduce royalty payments for its satellite radio service.

SoundExchange insists it has the legal right to sue non-compliant providers to ensure compliance and payment of required royalties, a point SiriusXM previously acknowledged when the claims were first raised.The organization is exploring an appeal and may pursue legal action in state courts to secure its ability to collect all digital performance royalties owed to its constituents under the law.