AccuRadio Agrees to Pay SoundExchange $210,000 a Month In Temporary Payments Agreement as Litigation Plays Out
AccuRadio is facing a SoundExchange lawsuit for allegedly failing to make licensing payments. Photo Credit: SoundExchange
A little over two months following the start of their lawsuit, SoundExchange and AccuRadio have hammered out a temporary payments agreement and ceased battling over an injunction.
That agreement’s specifics were just recently finalized in an order from Judge Matthew F. Kennelly, after SoundExchange submitted the underlying complaint in late July. As we covered in greater detail at the time, the plaintiff accused the internet-radio defendant of failing to cough up allegedly owed royalty payments.
Besides pursuing the royalties themselves, SoundExchange moved to obtain a preliminary injunction barring the statutory license’s use on the part of AccuRadio, which described the suit to DMN as “a complete surprise.” But now, following ample back-and-forth over the amount allegedly owed and more, the litigants have reached a deal to dial things down while the action plays out.
First up under that deal, which has as noted been confirmed by the court, SoundExchange has withdrawn its preliminary injunction motion. However, the AI-minded entity can resume that push down the line if it so desires.
This leads us to the second component of the agreement and order, “adequate protection in the form of advance monthly payments” from AccuRadio to SoundExchange.
As laid out in the legal text, the defendant is specifically set to forward to SoundExchange a minimum of $210,000 on the first of every month “until a final judgment is entered in the” overarching case, with the initial payment due today.
Regarding potential changes to the amount, the payments plan can be altered sans court approval if AccuRadio and SoundExchange consent to the retooled terms in writing. Any adjustments would be based on “AccuRadio’s average number of performances” per month (which will still be tracked through monthly reports in any event) as well as “the current regulatory rate for non-subscription transmissions.”
AccuRadio, the order emphasizes for good measure, will “receive full credit for payments received by SoundExchange under this Order against liability owed to SoundExchange as determined by the Court.”
And should the defendant fail to make a payment, SoundExchange reserves the right to refile its preliminary injunction motion, hunt for an expedited briefing schedule, or “seek any other appropriate relief.”
The AccuRadio dispute isn’t the only unpaid-royalties litigation SoundExchange is currently spearheading; an increasingly convoluted showdown involving SiriusXM, complete with counterclaims from the satellite radio company, is also in full swing.
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