XM Canada being sued for non-payment of royalties in Canada

sts103

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Jan 6, 2009
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Canadian Satellite Holdings Inc, who operate XM Radio in Canada, are being sued for non-payment of royalties dating back to 2005. Details have been reported by the Globe and Mail on their website, theglobeandmail.com.

I had been expecting that the two Canadian companies would announce a merger by the fall. Not sure what incentive their would be for Sirius Canada to assume the additional liability. Curious what the most likely outcome would be. I don't think that XM Canada would be able to operate indefintely without making a profit. What are the implications for the OEM contracts in Canada and the retail subscribers?
 

Allanon

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Oct 17, 2008
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I think that it is best for Sirius Canada to simply wait for XM Canada to go bankrupt. Once XM Canada is gone along with its exclusivity contracts with Sirius XM (US), Sirius Canada will be able to license the full Sirius XM spectrum. That would be much cheaper, I'm sure, than merging with XM Canada.
 

sts103

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Jan 6, 2009
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Ottawa
To update this thread, XM Canada reached an agreement on royalty payments last fall. I haven't heard of any talk of a merger between Canadian Satellite Radio Holdings and Sirius Canada since then. Sirius Canada subscribers have been told that a royalty surcharge will be implemented beginning in March.
 

IdRatherBeSkiing

Sherbert is not and never will be ice cream
Oct 11, 2008
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To update this thread, XM Canada reached an agreement on royalty payments last fall. I haven't heard of any talk of a merger between Canadian Satellite Radio Holdings and Sirius Canada since then. Sirius Canada subscribers have been told that a royalty surcharge will be implemented beginning in March.
Last I heard XM Canada and Sirius Canada had retained an investment company of some sort (forget which one) to investigate the possibility and/or logistics of merging the companies.