Copyrights to Programming
In connection with our music programming, we must negotiate and enter into royalty arrangements with two sets of rights holders: holders of copyrights in musical works, or songs, and holders of copyrights in sound recordings — records, cassettes, compact discs and audio files.
Musical works rights holders, generally songwriters and music publishers, are represented by performing rights organizations such as the American Society of Composers, Authors and Publishers (“ASCAP”), Broadcast Music, Inc (“BMI”), and SESAC, Inc (“SESAC”). These organizations negotiate fees with copyright users, collect royalties and distribute them to the rights holders. We have arrangements with all of these organizations.
Under the Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998, we also have to negotiate royalty arrangements with the copyright owners of the sound recordings, or if negotiation is unsuccessful, the royalty rate is established by the Copyright Royalty Board (the “CRB”) of the Library of Congress. Sound recording rights holders, typically large record companies, are primarily represented by SoundExchange, an organization which negotiates licenses, and collects and distributes royalties on behalf of record companies and performing artists. In January 2008, the CRB issued a decision regarding the royalty rate payable by SIRIUS and XM under the statutory license covering the performance of sound recordings over their satellite radio services for the six-year period starting January 1, 2007 and ending December 31, 2012. Under the terms of the CRB’s decision, SIRIUS and XM paid a royalty of 6.0% of gross revenues, subject to certain exclusions, for 2007 and 2008, and will pay a royalty of 6.5% of gross revenues, subject to certain exclusions, for 2009, 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012. SoundExchange has appealed the decision of the CRB to the United States Court of Appeals for the District of Columbia Circuit. Final briefs in this matter were submitted to the court in February 2009 and oral argument is scheduled for March 2009.

Sirius Xm 2008 10-K

Here is another filing: LINK

XM PRESS RELEASE

WASHINGTON, Dec. 4 /PRNewswire-FirstCall/ — On December 3, 2007, the Copyright Royalty Board (CRB) issued its determination and order setting the royalty rate payable by XM Satellite Radio (Nasdaq: XMSR - News) under the statutory license covering the performance of sound recordings over the XM system for the six-year period starting January 1, 2007 and ending December 31, 2012. Under the terms of the CRB Satellite Radio Services, XM will pay a performance license rate of 6.0% of those gross revenues subject to the fees for 2007 and 2008, 6.5% for 2009, 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012.

The revenue that is subject to royalty fees includes subscription revenue from our subscribers and advertising revenues from channels other than those that use only incidental performances of music. Other exclusions and deductions from revenue subject to the statutory license fee include but are not limited to revenue from channels, programming and products or other services offered for a separate charge where such channels use only incidental performances of sound recordings, revenue from equipment sales, revenue from current and future data services, fulfillment service fees, and bad debt expense.

“Today’s ruling by the Copyright Royalty Board brings to an end a year- long proceeding with the record labels and provides our company certainty regarding music performance royalties to be paid through 2012,” said Gary Parsons, Chairman, XM Satellite Radio. “Moreover, the music performance fees set by the CRB are in the range projected by many financial analysts who cover this industry. XM remains strongly committed to providing consumers the very best in both music and non-music programming, to compensating artists for their creative work, and to providing our shareholders a fair return on the multi-billion dollar investment in this new audio entertainment platform.”

Parties have 15 days from the December 3, 2007 decision to move for rehearing. Once the CRB has considered any rehearing motions, the Librarian of Congress will publish the final determination in the Federal Register. Parties will have thirty (30) days from that publication to appeal the decision to the U.S. Court of Appeals for the District of Columbia.

Existing 2007 financial guidance does not include the effect of this arbitration decision on 2007 financial results.