Market Overview

Sirius XM To Settle Royalty Dispute On Pre-1972 Recordings

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Sirius XM Holdings Inc. (NASDAQ: SIRI) will pay $210 million to settle a suit with independent and major record companies for its use of recordings created before 1972.

Pandora Media Inc (NYSE: P) has similar suits pending against it in New York and California

The agreement resolves a dispute between Sirius and ABKCO Music & Records, Capitol Records, Sony Music Entertainment, UMG Recordings, and Warner Music Group, according to the trade group Recording Industry Association of America.

"This is a great step forward for all music creators," Recording Industry Association of America Chief Executive Cary Sherman said. "We hope others take note of this important agreement and follow Sirius XM's example."

Sirius said it signed the agreement June 17 and enables it to broadcast the recordings at issue through 2017.

Royalty rates paid by Sirius for periods following 2017 will be subject to negotiation or binding arbitration, Sirius said.

The suits were filed in August and September 2013 by the record companies and by Flo & Eddie Inc. of the pop music band The Turtles.

The suits had sought more than $100 million in compensation plus unspecified punitive damages.

Sirius shares were unchanged recently at $3.82; Pandora traded recently at $16.07, off $0.31.

Posted-In: Recording Industry Association of America RIAANews Legal Tech

 

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