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Sirius XM sues SoundExchange and A2IM for right to obtain direct licenses

 |  March 28, 2012

Sirius XM has brought a lawsuit in the United States District Court for the Southern District of New York against SoundExchange and American Association of Independent Music (A2IM). Sirius XM claims violations of federal antitrust law and for illegal interference in SiriusXM’s business relationships.

SiriusXM had been negotiating the licenses through SoundExchange or securing the licenses as a result of regulatory rate-making proceedings. According to the complaint, when SiriusXM tried to contact record companies for direct licenses, SoundExchange and A2IM organized a boycott blocking independent record companies from negotiating with the satellite radio company. SiriusXM claims that through SoundExchange’s actions, it must pay more for statutory licenses than it would otherwise need to, had it been able to negotiate with the labels directly.

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