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BMI Takes SiriusXM to Court Over Royalty Rates: ‘Underpaying The Creators’

BMI is taking SiriusXM to court after failing to reach a deal on royalty rates, arguing the satcaster is “no longer a startup" and must pay more.

“Yet, despite achieving its secure and successful position, Sirius has continued to pay songwriters — who create the music essential to SiriusXM’s business — at rates that are below those negotiated decades ago when satellite radio was an infant industry with an uncertain future.” In doing so on Thursday, BMI pointed to what it sees as key shifts in SiriusXM’s business model since the two last negotiated a licensing deal in 2018 – namely, an increasing reliance on internet streaming rather than old-school satellite radio. “After 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,” BMI president Mike O’Neill wrote.

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