SiriusXM Reportedly Agrees To Potential $99 Million Settlement With Flo & Eddie

siriusxm 2015 logoAccording to The Hollywood Reporter, SiriusXM has agreed to a minimum $25 million settlement with The Turtles’ Flo & Eddie, and the other pre-1972 song rights owners in their class. That figure has the potential to reach $40 million for unresolved misappropriation claims.

The report also estimates a $45 to $59 million arrangement for a 10-year licensing deal for class members, expiring in 2028.

“That $25 million is just the baseline, according to a motion for preliminary approval of the settlement filed Monday,” reporter Ashley Cullins goes on to note. “Just how much that needle moves depends on what happens in the 2nd, 9th, and 11th Circuits when Sirius challenges its liability. By reserving the right to address the relationship of satellite music to the Commerce Clause, SiriusXM also has an eye on possible review by the U.S. Supreme Court.

“All together, pending a judge’s approval, SiriusXM could be looking at paying $99 million to independent musicians for the rights to perform ‘Happy Together’ and other older hits.”

As part of Nashville resident Mark Volman (Flo) and Howard Kaylan‘s (Eddie) 2014 summary judgement win, this month’s settlement was reached on the eve of a California federal trial.

“In exchange for a contingent payment of an additional $5 million to the Settlement Class and a 2 percent increase in the royalty rate otherwise owed, the Settlement provides that SiriusXM preserves its right to appeal the Court’s final judgment of liability on the performance right issue and Commerce Clause issue in this Action, but SiriusXM has also agreed that it will not appeal the Court’s class certification rulings,” states the motion. “[T]he parties also preserve their respective rights to proceed with the appeal of two related actions, the New York Action and the Florida Action.”

Sirius could pay an additional $15 million more if Flo & Eddie prevail on appeals in all three states.

A hearing on the motion for preliminary approval is set for Jan. 30. SiriusXM is represented by O’Melveny & Myers and Weil Gotshal & Manges. Flo & Eddie are represented by Gradstein & Marzano and Susman Godfrey.

The New York Times also reported, noting of another lawsuit by Flo & Eddie with Pandora.


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