Sonos Inc. is seeking dismissal from a lawsuit filed by SoundExchange, which alleges that Sonos and Napster failed to pay over $3.4 million in royalties, interest, and other costs associated with the operation of Sonos Radio. Sonos contends that it was not responsible for the payment of these royalties.
SoundExchange, the nonprofit organization designated by the U.S. government to collect and distribute digital performance royalties, initiated the lawsuit in June 2025. The complaint asserts that Sonos Radio, launched in April 2020 and powered by Napster’s music catalog until 2023, ceased making royalty payments around May 2022. This lapse allegedly resulted in significant unpaid royalties. ([digitalmusicnews.com](https://www.digitalmusicnews.com/2025/06/17/soundexchange-sues-sonos-napster/?utm_source=openai))
According to SoundExchange, the issues began following Napster’s acquisition by venture capital firms Hivemind and Algorand in May 2022. The departure of a key Napster employee responsible for reporting to SoundExchange reportedly led to a breakdown in reporting and payment processes. ([industrypreviews.com](https://www.industrypreviews.com/2025/06/18/soundexchange-sues-sonos-radio-over-missing-royalties-apparently-caused-by-departure-of-key-napster-employee/?utm_source=openai))
Sonos argues that, as the owner and operator of Sonos Radio, it was not directly responsible for royalty payments, which were managed by Napster. However, SoundExchange maintains that Sonos holds ultimate responsibility for ensuring compliance with statutory licensing requirements, including the payment of royalties. ([industrypreviews.com](https://www.industrypreviews.com/2025/06/18/soundexchange-sues-sonos-radio-over-missing-royalties-apparently-caused-by-departure-of-key-napster-employee/?utm_source=openai))
This case is part of a broader pattern of legal actions by SoundExchange to enforce royalty payments. In July 2024, SoundExchange filed a lawsuit against AccuRadio, Inc., alleging failure to pay creators for the use of protected recordings. ([soundexchange.com](https://www.soundexchange.com/news/soundexchange-files-suit-against-accuradio-inc-alleging-failure-to-pay-creators/?utm_source=openai)) Additionally, in August 2023, SoundExchange sued SiriusXM, claiming the company had unjustifiably excluded more than $150 million in royalties owed to creators. ([soundexchange.com](https://www.soundexchange.com/news/soundexchange-sues-siriusxm-over-underpayment-of-digital-streaming-royalties/?utm_source=openai))
The outcome of the Sonos case could have significant implications for digital music services and their obligations under statutory licensing agreements. As the legal proceedings continue, the industry will be closely monitoring developments to understand the responsibilities of service operators and their partners in ensuring compliance with royalty payment obligations.