As the popularity of satellite radio continues to grow, it appears that many people who sign up for Sirius/XM satellite radio subscriptions may be improperly charged royalty fees associated with the broadcast music. The scenario most often occurs as follows:
Sirius/XM often offers the purchaser of a new car three months of free service. Towards the end of the three months, the new car owner receives a letter from Sirius/XM offering what appears to be a great deal — the option to purchase one, two or three years of service. You can elect what type of billing cycle to pay on — monthly, every three months, annually, or every two or three years. Many people elect to pay in advance for one, two or three years of service, because Sirius/XM promotes that you can get savings of free months if you pay for your subscription in advance for a year or for two or three years of service. For example, if you pay for three years of service in advance, Sirius/XM represents that you will get nine months of free service. The letter also states that a monthly "music royalty fee" will be charged, but also states that "all monthly service fees are billed in advance." So, when you purchase a year (or two or three years) of service in advance, it appears, based upon what is stated in the offer letter, that all fees have been billed in advance, including the music royalty fee. There is no ambiguity in the statement "all monthly service fees are billed in advance", so that when you purchase one, two or three years of service in advance, you are led to believe that all monthly service fees have been paid in advance.
A surprise often comes to the unsuspecting subscriber, soon after paying for a year, two or three years’ subscription in advance. The subscriber will receive a statement showing that Sirius/XM has received his or her payment, but which then adds a new charge for the music royalty feel. Thus, even though the subscriber has paid for his or her year, or two or three year subscription in advance with the understanding that "all monthly service fees are paid in advance", he or she is now being charged additional monthly fees. Sirius/XM is thus charging monthly service fees to these subscribers even though it has already accepted their money having represented to its subscribers that all monthly service fees have been paid in advance.
If you or someone you know is a satellite radio subscriber, who has been charged a "music royalty fee", please contact us to discuss your rights.