AUSTIN, Texas--(BUSINESS WIRE)--
Mood Media Corporation (TSX:MM) (the “Company” or “Mood”) announces an update to the proceedings in the United States Court of Appeals for the District of Columbia Circuit (the “Appeals Court”) involving its wholly-owned subsidiary Muzak LLC (“Muzak”).
On April 25, 2017, the Appeals Court issued a decision in connection with the appeal filed by SoundExchange, Inc. (“SoundExchange”) of the decision of the United States District Court for the District of Columbia (the “Lower Court”) regarding the suit by SoundExchange against Muzak alleging underpayment by Muzak of certain royalties for Muzak’s consumer residential music channels for satellite and cable television subscribers.
While the Lower Court had dismissed SoundExchange’s allegation in March 2016, the Appeals Court reversed the ruling of the Lower Court and held that certain transmissions by Muzak, which began in May 2014 and in respect of which a lower royalty rate was paid, may be ineligible for such lower royalty rate. SoundExchange had claimed damages against Muzak corresponding to the amount of the underpayment of royalties and late fees, which amount could exceed $10 million.
While the Company continues to assess the potential impact of the decision of the Appeals Court on the business and operations of the Company, such decision may ultimately result in amounts payable by Muzak for the underpayment of royalties and late fees and may also impact Muzak’s business and revenues by requiring Muzak to pay the higher royalty rate in respect of certain transmissions going forward. The Company is evaluating what additional steps, if any, to take arising from the Appeals Court decision, including rights of appeal or reconsideration.
About Mood Media Corporation
Mood Media Corporation (TSX:MM) is the global leader in elevating Customer Experiences. With more than 500,000 active client locations around the globe, Mood combines sight, sound, scent, social mobile technology and systems to create greater emotional connections between brands and consumers. Mood’s clients include businesses of all sizes and market sectors, from the world’s most recognized retailers and hotels to quick-service restaurants, local banks and thousands of small businesses. For more details: http://us.moodmedia.com/.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities laws which is based on the expectations, estimates and projections of management of the parties as of the date of this news release unless otherwise stated. The use of any of the words "expect," "anticipate," "continue," "estimate," "objective," "ongoing," "may," "will," "project," "should," "believe," "plans," "intends" and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release contains forward-looking information concerning: the decision of the Appeals Court and the impact of the decision of the Appeals Court on the business and operations of the Company, including the potential amounts payable by Muzak for the underpayment of royalties and late fees and impact of Muzak’s business and revenues, the Company has provided such in reliance on certain assumptions that it believes are reasonable at this time. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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