SoundExchange Moves for Default Judgement Against Napster — But Faces Aggressive Dismissal Push from Sonos in Unpaid-Royalties Suit

Two months ago, SoundExchange sued Sonos as well as Napster for allegedly failing to pay over $3.4 million in due royalties. Now, the plaintiff is seeking a default judgement against Napster – and grappling with an aggressive dismissal push from Sonos.

Both developments surfaced in fresh filings, with the underlying suit having kicked off on June 16th. Naming the Sonos Radio operator and Rhapsody/Napster as defendants, the straightforward complaint accuses the parties of failing to make good on owed payments dating back to 2022.

“Sonos and Napster owe SoundExchange in excess of $3.3 million,” the legal text reads in part, “reflecting royalties incurred but not paid from October 2022 to April 2023, statutory interest, late fees, and the cost of an audit which is shifted by regulation to Sonos and Napster.”

Of course, much has changed since then; for one, Sonos Radio inked a long-term Deezer pact in February 2023. Next, Infinite Reality purchased Napster in March 2025 before rebranding as Napster Corporation in May.

Additionally, Sony Music earlier in August slapped the overarching Napster with an even bigger unpaid-royalties suit, this time alleging a failure to cough up $9.2 million in payments. And most significantly, SiriusXM scored a potentially far-reaching win in a due-royalties action levied by SoundExchange – more here in a moment.

Addressing the Sony Music suit, Napster Corp. underscored a commitment to “rebuilding” relationships with the majors; Napster had been the subject of late-payment rumblings before its sale.

Returning to SoundExchange’s sought default judgement, late June saw Rhapsody respond by waiving service, according to the request.

“Rhapsody was required to file an answer or otherwise respond to the Complaint by no later than August 18, 2025,” the document continues, emphasizing for good measure that the follow-up allegedly failed to materialize.

DMN contacted Napster for comment but didn’t immediately receive a response.

Shifting to Sonos’ arguments, as we previously reported, a federal judge tossed SoundExchange’s SiriusXM suit after finding that it lacks the statutory authority to sue. Unsurprisingly, the determination isn’t sitting right with SoundExchange – and parties including Sonos are now looking to capitalize on the precedent.

Though Sonos had already been planning to seek dismissal or alternatively a stay, on the heels of the SiriusXM ruling, its attorneys informed Team SoundExchange of plans to pursue the motion “based on the threshold issue of SoundExchange’s standing to litigate,” a joint filing recaps.

On the other side of the courtroom confrontation, “SoundExchange advised Sonos’ counsel that it contends that the Sirius Order was wrongly decided, is not binding on this Court, and SoundExchange intends to appeal,” the document proceeds.

Nevertheless, the parties have agreed to a schedule for the dismissal/stay motion, including a September 9th (or earlier) opening brief from Sonos, an October 9th cutoff for SoundExchange’s opposition, an October 30th deadline for Sonos’ retort, and, finally, a mid-November hearing, the scheduling summary shows.