Board Sets XM, Sirius Performance Royalties - Radio World

Board Sets XM, Sirius Performance Royalties

The Copyright Royalty Board has determined what royalties satellite radio will pay to SoundExchange.
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The Copyright Royalty Board has determined what royalties satellite radio will pay to SoundExchange.

The latter group was established to collect royalties for distribution to recording artists, musicians, record companies and other sound recording copyright holders.

The rates are applicable for 6 years, retroactive to Jan. 1 of this year and continuing until Dec. 31, 2012.

The CRB determined the value of the sound recordings to be 13% of gross revenue for each satellite radio company; however with discounts the effective performance license rates are 6% of those gross revenues subject to the fees for 2007 and 2008, 6.5% for 2009, 7% for 2010, 7.5% for 2011 and 8% for 2012.

SoundExchange had sought 8%, while the satellite services argued for a royalty rate of approximately 1 percent.

Parties have 15 days from the Dec. 3 decision to appeal.

Asked at the UBS conference if Sirius would do so, EVP/CFO David Frear said company executives were still reading the decision.

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