Second Circuit examines standing in $150 million SiriusXM royalties dispute
A Second Circuit panel heard arguments in a $150 million music royalties case against SiriusXM that could affect how streaming payments are enforced. The court is considering whether SoundExchange, a nonprofit that collects and distributes royalties, has standing to sue instead of individual artists. SoundExchange accused SiriusXM of manipulating its accounting to avoid paying hundreds of millions in royalties.
SoundExchange, a nonprofit royalty collector and distributor, sued SiriusXM in 2023. It alleged the satellite radio company used accounting maneuvers to dodge hundreds of millions in payments. A district court dismissed the suit in 2025, concluding that although SoundExchange could gather royalties for artists, that role did not automatically authorize it to litigate royalty agreements.
On appeal, Second Circuit Judge Richard Sullivan asked why artists could not pursue a class action themselves. SoundExchange attorney Paul Clement replied that his client could enforce a federal entitlement to payment. The earlier dismissal came from Judge Naomi Reice Buchwald.
The outcome could affect musicians, royalty organizations and broadcast or streaming services by clarifying who may enforce payment obligations. If SoundExchange can sue, collective royalty claims may become easier to pursue; if not, artists might need individual or class actions. That may influence how promptly royalties are paid and how companies structure accounting, while also shaping future disputes over statutory enforcement powers.