U.S., Canadian Satcasters Fight Over Fees

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Sirius XMSirius XM Canada Holdings is looking to binding arbitration to settle litigation with its U.S. counterpart over activation fees.


The SiriusXM Canada parent said it received a payment demand for nearly $34 million U.S. from SiriusXM Radio which owns more than 30% of the Canadian satcaster. Formed in 2010, Sirius and XM Satellite Radio companies in Canada merged more than two years after their U.S. counterparts did.

The payment is related to the XM license agreement covering 2005 to the end of January of this year. SiriusXM Radio also wants Canada to use the same methodology it uses to calculate those one-time fees for new subscribers.

SiriusXM Canada does not intend to comment further.