SoundExchange, Inc. v. Muzak LLC, No. 16-7041 (D.C. Cir. 2017)Annotate this Case
SoundExchange, a nonprofit entity, charged with the responsibility of collecting royalties for performing artists and copyright owners of music, filed suit under the Copyright Act, 17 U.S.C. 101 et seq., against Muzak, a company that supplies digital music channels to satellite television networks who, in turn, sell to subscribers. SoundExchange alleged that Muzak underpaid royalties owed. The district court dismissed the complaint. The court concluded that the better interpretation of the statute is that the term "service" under section 114(j)(11) contemplates a double limitation; both the business and the program offering must qualify before the transmissions are eligible for the favorable rate. Accordingly, the court reversed the district court.