$210m in settlement over pre-1972 recordings

Satellite radio service Sirius XM will pay $210 million to the three major labels and ABKCO as a result of a settlement in the legal dispute over pre-1972 recordings.The settlement was announced this morning and ends a lengthy dispute between Sirius XM and music industry parties over the interpretation of federal copyright law in the US.

“This is a great step forward for all music creators,” said Recording Industry Association of America (RIAA) chairman and CEO Cary Sherman. “Music has tremendous value, whether it was made in 1970 or 2015.  We hope others take note of this important agreement and follow Sirius XM’s example.”

Federal copyright protection has applied for songwriters in the US for some time, but recording rights are a different matter.

Sound recordings were only given federal copyright protection in 1972. However, sound recordings made before February 15, 1972 were already and remain protected under state law rather than under the federal copyright statute.

As a result, there are a variety of legal regimes governing protection of pre-1972 sound recordings in the various US states, and the scope of protection and of exceptions and limitations to that protection is unclear.

It was 1960s pop group The Turtles that first brought the issue to the courts two years ago, accusing Sirius XM of broadcasting their pre-1972 works without permission, making the point that they were still protected under certain state laws.

The major labels then also sued Sirius XM in 2013 for failure to pay royalties on pre-1972 recordings.

Sirius has now disclosed that it has reached an agreement with labels that will settle its past infringements and allow it to continue playing pre-1972 works until the end of 2017.

Sirius XM can also enter into new licenses to play the songs in question until 2022 as part of the agreement.

Source: Music Week