US satellite radio firm Sirius XM currently pays sound recording royalties of 7.5% of its gross revenues, although that’s due to rise to 8% in 2012. And then? Then the rates are up for renegotiation by the US copyright royalty board for the period 2013-2017. SoundExchange says it’s going to push for a big increase, claiming that back in 2007 when the current rates were set, the not-yet merged Sirius and XM’s “precarious financial positions” led the board to be lenient. “We have long been preparing for this proceeding, and are planning to seek a substantial increase in the statutory rate,” says SoundExchange. “In other words, we plan to seek rates well in excess of the 2012 rate of 8%.” It plans to cite the rates of privately-negotiated digital music licences, as well as Sirius XM’s improving revenues and profits. “Today, we believe that there is no reason that the statutory rate should remain artificially subsidized any longer…” Source: SoundExchange
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