Sirius XM Holdings Inc. (NASDAQ:SIRI) has eventually won a New York copyright lawsuit. The win is a reliever for the company, which has been battling with a satellite radio company over playing of old generation songs by The Turtles, a 1960s band. The lawsuit by filed by Flo & Eddie of The Turtles was dismissed with prejudice by the 2nd Circuit Court of Appeals.
This was a blow for the Turtles and other artists because it would have given the protection over the collection of royalties any time their songs are played. Apparently, there was an earlier ruling by a New York Appeals Court stating that New York’s common law does not have the power to protect the public performance of pre-1972 sound recordings.
But Flo & Eddie are of a different opinion
Flo & Eddie, which controls the band’s music rights, were not justified by the state court’s ruling. In their argument, The Turtles’ Howard Kaylan and Mark Volman questioned Sirius’ unfair competition and the liability for unauthorized copying. However, the 2nd Circuit Court of Appeals could hear none of this and went ahead to knock over a 2014 ruling by U.S. District Judge Colleen McMahon in New York.
The company will not be required to pay not less than $99.2 million to class members. Meanwhile, lawyers for Flo & Eddie have declined to comment as well as representatives from Sirius. It is also not clear what direction the NASDAQ stock for each of the companies will take.
This is not the only case seeking for payment from digital radio services
Sirius is not the only company in the limelight in regards to payment of royalties for songs recorded before Feb. 15, 1972. Pandora Media is also a victim but nonetheless, some artists and labels have smiled to lady luck and have won protection under in variety of state laws
Nonetheless, following the recent ruling, Sirius will not have to pay the $5 million New York payment. It has been given a preliminary approval by U.S. District Judge Philip Gutierrez in Los Angeles. In the meantime, Sirius closed at $4.91 witnessing an increase of $0.03 or 0.61%.
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