Here is everything you need to know about the new MRF’s Sirius XM will be implementing starting Tomorrow.
Effective July 29, 2009, a U.S. Music Royalty Fee has been added to subscriber invoices. Details about the specific costs being passed through to subscribers in this U.S. Music Royalty Fee are provided below.
1. Why does SIRIUS XM pay music royalties?
- Music royalty rights were established by Congress and are the product of the Copyright Act. Unlike terrestrial radio, both SIRIUS and XM are required to pay copyright music royalties to recording artists, musicians and recording companies who hold copyrights in sound recordings (the actual recording of a work). These royalties have risen dramatically as a result of a decision of the Copyright Royalty Board. Like terrestrial radio, SIRIUS and XM must also pay music publishers who hold copyrights in musical compositions (or the lyrics and music) through their collective organizations, ASCAP, BMI and SESAC. These fees have also risen since March 2007. Finally, SIRIUS and XM must also pay certain copyright owners to facilitate the recording of content on portable devices.
2. Who is the Copyright Royalty Board?
- The Copyright Royalty Board consists of three Copyright Royalty Judges who determine rates and terms for statutory copyright licenses that are set forth in the Copyright Act. These administrative judges are appointed by the Librarian of Congress.
3. Who benefits from the U.S. Music Royalty Fee?
- 100% of the U.S. Music Royalty Fee will be used to offset payments from SIRIUS and XM to the music industry.
4. How is the U.S. Music Royalty Fee calculated?
- We are passing along the increases in our costs attributable to statutorily or contractually required payments to the music, recording and publishing industries for the performance of musical works and sound recordings or for device recording fees since March 20, 2007, the date on which we applied to the FCC to approve the merger.
5. Do all SIRIUS XM subscribers pay the same fee?
- All subscribers who receive a given package containing music pay the same fee. We believe charging each SIRIUS XM subscriber the same fee most equitably apportions the increased fees to subscribers. Note: some packages, such as News, Sports and Talk contain little music and are not subject to the U.S. Music Royalty Fee.
6. How much is the U.S. Music Royalty Fee?
- The fee is $1.98 a month on our base $12.95 subscriptions and $.97 for base plans that are eligible for a second radio discount. Your actual fee may vary depending upon the Package and Plan term you choose.
7. Will I have to pay the U.S. Music Royalty Fee on the free months I received for buying an annual plan?
- No, free months do not incur any U.S. Music Royalty Fees.