SoundExchange is suing Slacker to recover unpaid royalties owed to performers and rights owners.
The suit was filed in U.S. District Court for the Central District of California against Slacker and its parent company, LiveOne Inc.
“By refusing to pay royalties for the use of protected sound recordings, Slacker and LiveOne have directly harmed creators over the years,” SoundExchange president and CEO Michael Huppe said. “Today, SoundExchange is taking a stand through necessary legal action to protect the value of music and ensure that creators are compensated fairly for their work. We hope Slacker and LiveOne will promptly reverse course and pay what they owe for the use of recordings that drive the value of their service.”
Slacker is subject to the statutory license for the use of sound recordings on digital radio but in 2017 stopped paying statutory royalties. SoundExchange has been in negotiations with Slacker since then, but the defendant has failed to meet the terms to which the parties agreed.
SoundExchange is now filing a complaint for breach of contract and underpayment of statutory royalties.