SoundExchange Loses SiriusXM Lawsuit: Judge Says Royalties Org Is ‘Not a Legal Advocacy Group’
In a major blow to royalties collector SoundExchange, a judge has ruled that the organization lacks the authority to bring federal lawsuits on behalf of artists. The decision comes in response to a lawsuit filed by SiriusXM against SoundExchange over unpaid royalties.
According to court documents, Judge Naomi Reice Buchwald determined that Section 114 of the Copyright Act does not provide legal authority for SoundExchange to engage in litigation. The judge’s ruling emphasizes that the organization was established solely to facilitate efficient royalty collection and distribution, rather than championing the views and interests of copyright owners.
SoundExchange has issued a statement expressing disappointment with the decision and confirming its intention to consider an appeal or seek alternative legal remedies to ensure the continued collection of digital performance royalties.
Source: www.billboard.com