BMI, a leading performance rights organization, has filed a rate court action against SiriusXM, accusing the radio service of underpaying for music licensing fees. BMI claims that SiriusXM has been paying rates based on outdated agreements from when satellite radio was a fledgling industry. Now, with SiriusXM thriving and expanding its digital offerings, BMI argues that songwriters and composers deserve more fair compensation for their work.
The legal battle comes after years of failed negotiations between the two parties. BMI states that SiriusXM’s current payment rates are significantly lower than those of other major music users, putting songwriters and publishers at a disadvantage despite their essential role in the company’s success.
BMI is asking the court to establish a new licensing rate that reflects SiriusXM’s current financial standing, its digital focus, and its overall influence in the music industry. This legal push is aimed at ensuring that the over 22.4 million songs BMI licenses are valued properly in today’s market.
As SiriusXM has yet to comment, the case now awaits the court’s decision, which could reshape how music licensing fees are structured for digital services going forward.
