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

Discussion in 'SiriusXM Canada' started by sts103, Sep 2, 2009.

  1. sts103

    sts103 New Member

    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?
     
  2. hyson

    hyson Forum Jerk

    Cananda, America Lite! This is sofa king we todd it.
     
  3. Allanon

    Allanon Member

    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.
     
  4. sts103

    sts103 New Member

    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.
     
  5. HecticArt

    HecticArt Administrator

    Any info on the terms of the agreement? Obviously, they are charging subscribers to cover future costs.
     
  6. Jon

    Jon Well-Known Member

    Don't things like this go through the CRTC, which is tatamount to the Gestapo?
     
  7. IdRatherBeSkiing

    IdRatherBeSkiing This space for rent

    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.
     

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