Sirius v. FCC, or “Sirius vs. FCC” as it is sometimes called, is a legal battle that has been playing out in the Federal Circuit in Washington, D.C. since 2021. The parties are: Sirius (owner/operator) and the FCC, which ordered Sirius to allow listeners to register for satellite radio without letting them use copyrighted music. It is interesting to note that a former FCC commissioner has already indicated that he expects this ruling to favor the FCC, and that will certainly provide for an enormous amount of leverage in the effort to get this ruling overturned.
Sirius Lawsuit
In 2021, when the FCC ordered Sirius to allow music on its satellite radio system without paying royalties, it also stated that it would impose some conditions on satellite radio operators, including those that limit music plays to an hourly basis and those that require an express request from the subscriber to play a song. As noted above, the FCC has limited music play in various situations, most notably on low power/sleep modes and during periods where the programming provided by a satellite station is not scheduled and promoted.
Now, it seems that it will apply those same restrictions to satellite music as well, though it is not clear whether it will do so in a way that will be injurious to Sirius. The FCC’s decision to strike down the price limit was based on the reasoning that it is unfair for a price to be set by a privately held company and that it therefore violates the First Amendment. However, a key difference between the FCC’s actions here and the one in Sirius v. FCC is that the latter case involved an initial license to air music copyrighted by someone other than Sirius; in this case, the FCC did not require a license and did not issue any royalty rate or quota, but merely instructed Sirius to play a song free.
The FCC’s order in this case does not appear to conflict with the First Amendment, as it only requires that a station provide airtime for a copyrighted work if requested by a listener.
Therefore, it appears to be simply a matter of requiring that the station to play a song in order to continue licensing coverage. For most of America’s satellite radio listeners, this means that the ruling in Sirius v. FCC does not impact them as long as they have purchased an authorization code, which they can request from their satellite radio provider.
However, the ruling in this lawsuit may have a broader effect on future programming.
Because Sirius has requested permission to air certain programming through an unlicensed code, the FCC can now fine both Sirius and its parent company, XM, for forcing their subscribers to listen to channels they do not want to. The FCC could also penalize stations that have more than one unauthorized channel but has not yet determined how it will go about doing so.
As well as changing channels that are illegally played, the FCC may establish rules governing the use of background music in live broadcasts, which could potentially prevent some talented artists from getting the chance to perform live on the air. In addition, it could even ban some sports events from being played on satellite TV stations, a move that could affect boxing, basketball, football and other major sports.
The dispute between Sirius and FCC was sparked in November when it was discovered that three channels, including XM satellite radio, were playing music with no licenses.
Subsequently, FCC sent a letter to XM, informing the company that it had to stop using unauthorized codes on its stations. After reviewing the correspondence, the FCC notified Sirius that it would fine the company a total of $2.5 million if it continued playing unlicensed music without authorization. The FCC’s decision essentially forces Sirius to play only approved music on its channel. For owners and operators of satellite radio stations, these laws could spell disaster – particularly if they are unfamiliar with the codes. The ruling could be a serious blow to the fledgling industry and could effectively close down smaller radio stations that rely on music royalties to stay afloat.
The legal battle could also impact future Sirius Channel broadcasts.
Some of the songs played on the satellite stations could be deemed illegal by the FCC, as well as songs with profanity in them. As well as directly affecting the listeners, the FCC’s actions could indirectly affect the subscription prices for millions of satellite radio subscribers. While the legal case is ongoing, Sirius can only make the broadcasts it already has, which could leave subscribers with fewer options if the legal situation worsens.
