BREAKING NEWS — Music Choice has suffered a procedural setback in its royalty dispute involving SoundExchange after the U.S. Court of Appeals for the D.C. Circuit dismissed its petition for review.
Appeals court says it lacks jurisdiction
The D.C. Circuit dismissed Music Choice’s attempt to obtain appellate review of a Copyright Royalty Board ruling concerning alleged royalty underpayments to SoundExchange. The court concluded that it did not have jurisdiction to hear the petition in this posture, meaning Music Choice would need to pursue its challenge through district court if it wants to continue contesting the decision.
Royalty disputes are increasingly becoming infrastructure stories. For artists and rights holders, the key issue is not simply how much a streaming or digital music service earns, but whether statutory royalties are calculated, reported and distributed correctly.
What is SoundExchange’s role?
SoundExchange is the U.S. nonprofit organization designated to collect and distribute certain digital performance royalties for sound recordings. The dispute with Music Choice centers on a Copyright Royalty Board determination that the service underpaid royalties that ultimately flow to copyright owners and performers.
A procedural loss, not necessarily the end of the case
The dismissal does not itself resolve every underlying royalty question. Instead, it determines where Music Choice can challenge the ruling. That distinction matters: the appellate court’s decision closes this particular route while leaving district-court litigation as the potential next step.
Audiartist analysis
The case is a reminder that music-industry economics depend heavily on less-visible accounting and collection systems. When a royalty dispute reaches federal court, the consequences can extend beyond the companies involved by clarifying which legal routes digital music services and collecting organizations must use when challenging royalty determinations.
What happens next?
Music Choice can still seek to contest the Copyright Royalty Board’s determination through the appropriate district-court process. For SoundExchange and the rightsholders it represents, the immediate result leaves the challenged royalty determination intact while the procedural battle moves elsewhere.
Source: Bloomberg Law, Aug. 19, 2026.
