Sound Exchange says it was regrettable that it had to take on Slacker for failure to pay creators. On Thursday, October 13, the court entered judgment against Slacker and LiveOne in the amount of $9.7 million for unpaid royalties due to performers and rights owners under the U.S. government’s Section 114 sound recording license. In addition, the court permanently barred Slacker and LiveOne from using the statutory license going forward.
“SoundExchange takes our role in defending fair compensation for creators seriously. Despite a prior agreement, multiple promises, and repeated negotiations, Slacker and LiveOne failed to pay properly for the music – on which the companies built their business model,” said Michael Huppe, President and CEO of SoundExchange. “It is regrettable that this step became necessary, but we will not back down when it comes to protecting creators and ensuring they are well-represented and properly paid under the law. We are grateful for the court’s recognition of the value proposition and this judgment in our favor.”
The suit was filed by SoundExchange to recover unpaid royalties owed to performers and rights owners.