On Monday (July 22), we reported that US performing rights group SoundExchange filed a lawsuit in opposition to US on-line radio service AccuRadio, Inc., searching for to get better unpaid royalties owed to artists and copyright homeowners.
The authorized motion comes only a yr after SoundExchange took authorized motion in opposition to satellite tv for pc streaming service SiriusXM over alleged unpaid royalties.
SoundExchange claims in its lawsuit in opposition to AccuRadio that the free web radio service paid statutory royalties for recordings it used earlier than 2016, however that the platform’s funds “slowed and in the end stopped” in 2018.
SoundExchange additionally claims that it has been in negotiations with AccuRadio since 2018 to resolve its excellent steadiness, however AccuRadio has failed to fulfill the agreed phrases.
“AccuRadio’s refusal to pay royalties for the usage of protected sound recordings for a few years has instantly harmed creators,” SoundExchange President and CEO Michael Huppe mentioned in an announcement launched Monday.
Huppe added: “In the present day, SoundExchange is standing up for creators with this lawsuit to guard the worth of music and guarantee creators are pretty compensated for his or her work. We hope AccuRadio will reverse the state of affairs instantly and pay them for his or her use. Charges owed for music providers foundation.
AccuRadio founder and CEO Kurt Hanson has now responded, claiming in an announcement to MBW that “the lawsuit in opposition to AccuRadio comes as an entire shock to the corporate.”
Hanson added: “We’ve got been negotiating a good and affordable fee plan with SoundExchange for a number of months, and we consider each events have good intentions.
“In truth, we consider our newest proposal is being reviewed by SoundExchange and might be adopted by all events with solely minor modifications.”
Hanson additionally disputed allegations within the lawsuit that AccuRadio “did not pay” substantial royalties and claimed the streaming service “has at all times been dependable.” [SoundExchange] I’ve been a licensee for the overwhelming majority of the previous 20-plus years.”
He additional claimed that AccuRadio has paid greater than $12.5 million in royalties to SoundExchange up to now.
Hansen added: “[SoundExchange’s] It’s false to counsel that AccuRadio has not paid royalties since 2018 and fails to notice that AccuRadio resumed full funds in early 2021 and continued till just lately.
SoundExchange states within the lawsuit that AccuRadio “operates a multi-channel Web radio service that gives entry to greater than a thousand pre-developed music channels and hundreds of thousands of recordings.”
AccuRadio claims to have almost 1 million distinctive listeners every month, with “as much as 25,000 simultaneous listeners.”
U.S. copyright legislation offers digital broadcasters similar to AccuRadio a full “statutory” license to make use of sound recordings, supplied they pay royalties for the music they use.
SoundExchange is the one U.S. entity designated by the Library of Congress to manage statutory licenses beneath Part 114 of the Copyright Act, acquire digital efficiency royalties from licensees, and distribute these royalties to performing artists and rights holders.
AccuRadio CEO Kurt Hanson claimed in an announcement that “recording royalty charges for music performed on on-line radio are a lot increased than for different types of radio.”
Hanson added: “AM/FM stations don’t pay recording royalties for terrestrial broadcasts, and satellite tv for pc broadcasts are rumored to pay royalties of about 15% of income, however AccuRadio’s [SoundExchange] Royalty obligations in sure months vary from 45% to 78% of its income.
Hansen added that the webcasting service “intends to[s] Continued cooperation [SoundExchange]Instantly or by way of a decide, work out a good and affordable fee plan for previous money owed and resume present funds as shortly as potential.world music enterprise
