Sirius Is Sued Over Music Royalties for Pre-1972 Recordings

The entity that collects performance royalties from digital music services—and distributes them to performers and record labels—sued satellite-radio giant Sirius XM for allegedly refusing to pay for recordings made prior to 1972.

The suit, filed in U.S. District Court for the District of Columbia, spotlights a quirk in copyright law: There is little explicit protection for so-called legacy artists, because sound recordings weren't brought within the scope of federal copyright protection until 1972. Older recordings are protected under a patchwork of state laws. Because of that, Sirius has never paid to use these songs, even though such oldies account for an estimated 10% to 15% of the satellite-radio company's total airplay, according to SoundExchange. Sirius sets aside the revenue generated by these pre-1972 spins before it calculates the royalties it owes rights holders—a percentage, set by the government, of the subscription fees its customers pay and some other revenue streams.