SoundExchange alleges that starting in August 2021, Slacker/LiveOne ceased making the required monthly payments under the RPPA and also neglected to make statutory license payments that came due after the agreement was reached - and that any payments they did make were late. According to the complaint, Slacker/LiveOne agreed that in the event of a default, SoundExchange would be entitled to file a stipulated consent judgment and collect additional late fees to the maximum amount allowed under regulation. In October 2020, SoundExchange says it entered a royalty payment plan agreement (RPPA) with Slacker/LiveOne requiring the latter companies to pay what they owed through August 2020 over a 24-month period. The complaint also alleges that a December 2016 audit initiated by SoundExchange covering the years 2013-15 found that Slacker owed further royalties it had failed to pay during that time period, in addition to late fees set by government regulation. SoundExchange says the crux of the problems began in July 2017, when it claims Slacker continued providing it with the required royalty reports but ceased making the payments associated with those reports. 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.”

“Today, SoundExchange is taking a stand through necessary legal action to protect the value of music and ensure creators are compensated fairly for their work. “By refusing to pay royalties for the use of protected sound recordings, Slacker and LiveOne have directly harmed creators over the years,” said SoundExchange president and CEO Michael Huppe in a statement. SoundExchange is suing for breach of contract and underpayment of statutory royalties. Since that time, SoundExchange, which is the sole entity designated to collect and distribute those royalties in the U.S., says it has been negotiating with Slacker to resolve its outstanding balance, but that the company has failed to meet the terms of their agreement. The complaint alleges that Slacker stopped paying statutory royalties to creators beginning in 2017. SoundExchange CEO Michael Huppe Talks Latin Music's Big Payout & Supporting Creators

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