Dallas, Texas 06/29/2015 (Financialstrend) – Sirius XM Holdings Inc. (NASDAQ:SIRI) has opted to arrive at an expensive settlement for unchallenged rights to play pre-1972 recordings or music. According to its Form 8-K report filed on June 26, 2015, the satellite-radio company has arrived at a $210 million settlement with record companies Capitol Records LLC, Sony Music Entertainment, UMG Recordings Inc., Warner Music Group Corp., as well as ABKCO Music & Records Inc., an independent recording company.
Settlement Entitles License negotiating rights until 2022
The group of record companies is expected to ‘dismiss’ the lawsuit with immediate effect. The radio company’s settlement will include prior claims of use of the recordings of music which are dated 1972 and before. The settlement entitles SIRI to play such music, reproduce it, perform or broadcast anywhere in US until the end of 2017.
The settlement also entitles SIRI to claim the right to extend the license from 2018 to 2022. The royalty is to be negotiated afresh for the period. The parties will then be bound by arbitration to find the royalty rate, in case of differences of opinion. The new licenses which Sirius XM can create can therefore run for longer period, if the royalty rates are mutually agreeable.
Sirius XM Holdings Inc. (NASDAQ:SIRI) will now be entitled to use nearly 80 % of the pre-1972 music held by the label companies.
The settlement brings to an end, long-drawn litigation between the satellite company and the record label companies. However, SIRI will continue to be under the limelight as far as law suits by record labels are considered. It is yet to resolve a very similar litigation filed by the founders of Turtles, Flo and Eddie, which was separately filed by them.
Sirius XM Holdings Inc. (NASDAQ:SIRI) settlement now ends much of the confusion with most of the music recorded prior to 1972 within the scope of Federal Copyright Laws.