Sirius XM Radio Inc (NASDAQ:SIRI) Litigated Over Underpayment Of Digital Royalty

0
568

Dallas, Texas 08/28/2013 (Financialstrend) – Sirius XM Radio Inc (NASDAQ:SIRI) has been litigated by Sound Exchange Inc for around $50 million for paying too little on recordings, comprising ones before from the year 1972.

Sound Exchange Inc, a non-profit-making company with task of accumulating digital royalties for musicians in US, lodged the case in the US District Court of Colombia.

Sound Exchange Inc is a body selected by the Copyright Royalty Board to gather and distribute performance royalties set up below federal law.

Company dodged royalty sum

In the court case, it is cited that between the year 2007 to the year 2012, Sirius XM “methodically” did not make payments of royalties to Sound Exchange for the legal authorization that permits the service to transmit recordings to hoards of paying subscribers.

Additionally, it was remarked that the company reported less income by around 10 to 15% as compared to it usually does to work out the royalties. The move was proposed to match the recital with pre-1972 footages.

Sound Exchange stated that the royalty charge to be filed on the gross income will be from 6% in the year 2007 to 8% in the year 2012.

“We cannot sit by and watch this multi-billion dollar firm reap all time high profits from the creative inputs of artists as well as labels without making payments to them everything they deserve,” Sound Exchange CE Michael Huppe stated.

Other accusations against company

Aside from underpayment of royalties, the company was charged of many other matters like exclusion from its revenue computation of the funds it drew from its clients who pay a regular contribution to XM premier package.

Sirius XM recital during the similar period

During the period of time when the company annulled paying musicians for their vital service, the firm’s user base zoomed to 24 million as against 17 million, and income augmented to $3.4 billion as compared to $2.06 billion.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.