SoundExchange’s unpaid royalties lawsuit against Music Choice heads back to court, more than seven years after it was filed

SoundExchange’s long-running lawsuit alleging that Music Choice underpaid royalties for its business music service is returning to a federal court in Washington, DC. The dispute centres on which payments count towards royalty calculations and could involve tens of millions of dollars.

The case, filed in April 2019, was paused while the Copyright Royalty Board and an appeals court considered the rule. The board backed SoundExchange’s interpretation in December 2024, but in August 2026 the appeals court dismissed Music Choice’s challenge, saying it lacked power to review the decision and that the board’s interpretation was not binding. The companies have proposed about 75 days to exchange evidence on damages, then settlement talks or mediation, expected to conclude in early March.