SoundExchange has filed a notice of appeal in the US Court of Appeals for the Second Circuit, seeking to overturn an August decision that threw out its $150 million royalty case against SiriusXM and, more broadly, barred the collective from suing over underpayments. US District Judge Naomi Reice Buchwald held that Section 114 of the Copyright Act does not grant SoundExchange an express or implied right to bring enforcement actions, contrasting it with Section 115, which explicitly authorizes the Mechanical Licensing Collective to sue. Under the ruling, only individual copyright owners—or Congress—may pursue claims tied to the Section 114 statutory license.
In a statement, SoundExchange argued that Congress intended the statute’s “enforcement” framework to include the administrator’s ability to litigate when digital services fail to meet their obligations, and said the system cannot function properly without that authority.
The underlying complaint alleged SiriusXM underreported revenue in 2018 by bundling satellite and streaming subscriptions, depressing payments owed under the statutory license. An Adeptus Partners audit was cited, but the court never reached the merits, deciding the case solely on standing.
The stakes extend beyond the parties. Amicus briefs supporting SoundExchange came from the RIAA, SAG-AFTRA, the American Federation of Musicians, and A2IM, warning artists and labels could see reduced royalties if the collective cannot sue. SoundExchange and SiriusXM previously settled a separate $150 million dispute in 2018; the new appeal will test whether courts—or Congress—clarify who may enforce Section 114 obligations.