SoundExchange Loses SiriusXM Lawsuit: Federal Judge Rules Against Organization’s Legal Authority

SoundExchange Loses SiriusXM Lawsuit: Judge Says Royalties Org Is ‘Not a Legal Advocacy Group’

A federal judge has ruled in favor of SiriusXM, dismissing a lawsuit filed by SoundExchange over alleged unpaid royalties. The decision marks a significant blow to the organization’s legal efforts and calls into question its ability to bring lawsuits on behalf of artists.

The ruling from Judge Naomi Reice Buchwald states that SoundExchange is not a “legal advocacy group” and therefore lacks the authority to sue companies like SiriusXM for non-payment of royalties. According to the judge, the organization’s mandate is solely focused on collecting and distributing royalties, rather than advocating for artists’ interests.

This decision comes after SiriusXM filed a motion arguing that SoundExchange does not have the legal right to bring federal lawsuits as it does not align with its original purpose. The court has sided with SiriusXM, dismissing the lawsuit and effectively ending the matter.

SoundExchange responded to the ruling by stating that it “firmly believes Judge Buchwald’s interpretation is entirely wrong on the law” and is considering an appeal of the decision. The organization also hinted at taking matters into their own hands, potentially filing lawsuits in state courts to ensure its continued ability to collect all digital performance royalties.

The lawsuit, which aimed to recover $150 million in unpaid royalties, has been dismissed with prejudice, meaning it cannot be re-filed by SoundExchange. This setback could have significant implications for the music industry, as it casts doubt on SoundExchange’s ability to champion artists’ interests in these types of disputes.

In related news, Billboard will continue to provide comprehensive coverage of this story and its potential impact on the royalty landscape.

Source: www.billboard.com