{"id":2578,"date":"2024-09-12T20:23:51","date_gmt":"2024-09-12T20:23:51","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/bmi-takes-siriusxm-to-court-over-royalty-rates\/"},"modified":"2024-09-12T20:23:51","modified_gmt":"2024-09-12T20:23:51","slug":"bmi-takes-siriusxm-to-court-over-royalty-rates","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/bmi-takes-siriusxm-to-court-over-royalty-rates\/","title":{"rendered":"BMI Takes SiriusXM To Court Over Royalty Rates"},"content":{"rendered":"\n
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\n\tBMI is taking SiriusXM to court after the two sides failed to reach a deal on royalty rates during more than two years of negotiations, arguing that the satcaster is \u201cno longer a startup\u201d and must pay more to songwriters.<\/p>\n

\n\tIn a petition filed in court today, BMI asked a Manhattan federal judge to uphold a higher royalty rate it has asked SiriusXM to pay \u2013 citing increased revenue for the radio giant and a shift toward more lucrative digital streaming.<\/p>\n

\n\t\u201cSiriusXM\u2019s financial performance, and its expansion of its digital offerings, make clear it is no longer a startup in a nascent industry,\u201d lawyers for the rights group wrote. \u201cYet, despite achieving its secure and successful position, Sirius has continued to pay songwriters \u2014 who create the music essential to SiriusXM\u2019s business \u2014 at rates that are below those negotiated decades ago when satellite radio was an infant industry with an uncertain future.\u201d<\/p>\n

\n\tA spokeswoman for SiriusXM declined to comment on BMI\u2019s case.<\/p>\n

\n\tBMI is a so-called performance rights organization that collects copyright royalties owed to publishers and songwriters when their songs are performed publicly, offering blanket licenses that allow for the use of more than 22 million tracks. When BMI cannot agree with a licensee like SiriusXM, either side can ask a federal judge to decide the dispute and set a reasonable rate.<\/p>\n

\n\tIn doing so on Thursday, BMI pointed to what it sees as key shifts in SiriusXM\u2019s business model since the two last negotiated a licensing deal in 2018 \u2013 namely, an increasing reliance on internet streaming rather than old-school satellite radio.<\/p>\n

\n\t\u201cAs a result of these changes, SiriusXM\u2019s business has shifted and is becoming more akin to a music streaming service than a traditional satellite radio or broadcast radio,\u201d BMI\u2019s attorneys wrote. \u201cDigital music services pay higher rates to BMI than satellite radio, and the new SiriusXM rate should reflect this expansion of digital performances.\u201d<\/p>\n

\n\tThe specific terms of the royalty rate that BMI is seeking from SiriusXM were not disclosed in court filings because BMI said it was \u201ccompetitively sensitive.\u201d The new rate would cover the period from January 1, 2022 to December 31, 2026.<\/p>\n

\n\tIn a statement announcing the case on Thursday, BMI said that songwriters \u201cshould not have to accept an outdated rate that significantly undervalues their music.\u201d<\/p>\n

\n\t\u201cAfter attempting to negotiate with SiriusXM in good faith for more than two years, we were compelled to file this action given their insistence on underpaying the creators of the music that drives the majority of their business,\u201d BMI president Mike O\u2019Neill<\/strong> wrote. \u201cWe will continue to fight for fair and appropriate rates when we believe the music created by our songwriters and composers is being significantly undervalued.\u201d<\/p>\n

\n\tThe filing of the new case was celebrated Thursday by the National Music Publishers\u2019 Association, with president and CEO David Israelite<\/strong> saying the group was \u201cextremely pleased\u201d with BMI\u2019s decision to \u201cdemand what\u2019s fair.\u201d<\/p>\n

\n\t\u201cCompanies like SiriusXM have massive profit margins fueled by music creators,\u201d Israelite said in a statement. \u201cWe fully support BMI in their fight for the value of songs.\u201d<\/p>\n

\n\tBMI isn\u2019t the only rights group in a dispute with SiriusXM over its shift toward streaming. In a lawsuit last year, SoundExchange accused the company of using bookmaking trickery \u2013 namely, manipulating how it bundles its satellite and streaming offerings \u2013 as part of a scheme to \u201cgrossly underpay\u201d royalties by more than $150 million. SiriusXM later fired back, denying the lawsuit\u2019s \u201cmisguided allegations.\u201d That case remains pending.<\/p>\n

\n\tRead BMI\u2019s full petition against SiriusXM here:<\/p>\n