Sirius XM Sued by Nonprofit Over Royalties and 2 Other Hot Stocks to Watch
Sirius XM Radio Inc. (NASDAQ:SIRI): Current price $3.58
On Monday, a United States nonprofit, whose function is collecting digital royalties for music artists, brought a lawsuit against Sirius XM Radio for a minimum of $50 million for underpaying on recordings, including ones recorded before 1972. The suit was filed in the United States District Court for the District of Columbia by SoundExchange Inc., an entity that was appointed by the Copyright Royalty Board to gather and distribute performance royalties established under federal law.
According to the lawsuit, Sirius XM “systematically” underpaid SoundExchange from 2007 through 2012 for the statutory license that permits the service to broadcast recordings to its paying subscribers. The lawsuit said that Sirius in particular reduced by between 10 and 15 percent the gross revenues it reports by which to calculate the royalties, because that amount corresponded to performances of pre-1972 recordings.