SoundExchange’s $3.4M lawsuit against Sonos put on hold until appeals court rules on its right to sue over unpaid royalties

A California federal judge has administratively closed SoundExchange’s lawsuit against Sonos while a New York appeals court considers whether SoundExchange can sue companies over unpaid royalties. The pause matters because that ruling could determine whether the organisation can pursue its claim against Sonos at all.

SoundExchange sued Sonos and Napster in June 2025, seeking at least $3,423,844.41 for royalties, late fees, interest and audit costs linked to Sonos Radio. It alleges reporting and payments stopped in May 2022; Napster was later recorded in default. The dispute follows a separate case in which a New York judge dismissed SoundExchange’s claim against SiriusXM, which the organisation has appealed. The Sonos parties must update the California court every 90 days.