SoundExchange Sues Mood Media For “Cheating Artists Out of Royalties”

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Back in 2011, Mood Media purchased background music company Muzak.

Muzak isn’t required to pay market value on royalties.  The company was grandfathered into an older standard of setting royalty rates when the DMCA went into effect in 1998.

In 2012, Mood Media also acquired DMX, a branding agency that provides music to satellite and cable networks.

Now, SoundExchange is suing Muzak for allegedly cheating artists by underpaying royalties.

SoundExchange says Mood Media moved DMX’s cable and satellite contracts over to Muzak, and slashed rates based on Muzak’s older royalty standard.

Michael Huppe, President and CEO of SoundExchange, accuses the company of “playing a shell game to cheat artists and rights holders out of royalties.”

 

Nina Ulloa covers breaking news, tech, and more: @nine_u

Photo by StockMonkeys.com on Flickr used with the Creative Commons License

3 Responses

  1. Remi Swierczek

    Muzak is the famous “elevator music” company.
    I am assuming that Mood Media provides media for good mood at any place.
    Also here solution is simple: convert Mood Media and places where they deliver music to simple music store.

    Then we can stop fight over ROYALTIES – one penny of royalties might become one dollar in music!

    Reply
  2. Musicservices4less

    Didn’t MUZAK HOLDINGS, LLC file bankruptcy in 2009 or so? I know that entity did because a number of my clients got screwed when it happened. In fact, The Harry Fox agency and the PROs were the big losers. It’s terrible that a lawyer doesn’t comment on this site for instance as to the effect of that bankruptcy filing and the ability of DMX to claim it acquired the assets of Muzak which consisted of lower royalty rates. Is that even an asset?

    Somebody help!

    Reply

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