Details of the Flo & Eddie class action settlement with SiriusXM over plays of pre-1972 recordings has emerged in the form of a court filing and analysis. The ruling could mean as much as $99 million - before lawyer's fees, of course - for the classic rock pair.
SiriusXM must pay Flo & Eddie at least $25 million and as much as $99 million over plays of pre-1972 recordings, according to court documents.
The settlement guarantees $25 million payment vs. a 5.5% license for 10 years, which is worth between $45.47 million to $59.2 million, assuming the satelitte streamer plays the other class members at the same play rate as they have in the past.
But that's just the beginning...
"In exchange for a contingent payment of an additional $5 million to the Settlement Class and a 2% increase in the royalty rate otherwise owed, the Settlement provides that Sirius XM preserves its right to appeal the Court’s final judgment of liability on the performance right issue and Commerce Clause issue in this Action, but Sirius XM has also agreed that it will not appeal the Court’s class certification rulings," states the motion. "The parties also preserve their respective rights to proceed with the appeal of two related actions, the New York Action and the Florida Action."
Sirius could also be forced to pay up to $15 million more if current rulings stick in all three states.
"On a per-play basis, the minimum $25 million settlement represents approximately an award of $15.68 per play; the $40 million settlement represents approximately $25 per play," states the motion. "None of these funds revert back to Sirius XM. By any measure, that compensation by itself is an excellent result."
SiriusXM had previously reached a $210 million settlement with the three major record labels for their pre-1972 plays.
Read the full settlement ruling here (pdf).