SoundExchange Says Music Service Is 'Cheating Artists'

Law360, New York (April 2, 2015, 3:02 PM EDT) -- SoundExchange took music provider Mood Media Corp. to federal court Thursday to resolve a strange dispute over digital music royalty rates, accusing the company of “playing a shell game to cheat artists” by exploiting quirky changes made to copyright law in the 1990s.

Sound Exchange claims Mood is “gaming the system” — improperly trying to extend a special, low royalty rate Congress granted to the company's Muzak subsidiary to other music services offered by Mood, and refusing to pay anything else.

"Muzak is playing a shell...
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