SoundExchange, the nonprofit organization that collects and distributes digital performance royalties, has filed a federal lawsuit against Sonos Inc. and Napster (Rhapsody International Inc.) for failing to pay over $3.4 million in royalties, interest, and related costs associated with the operation of Sonos Radio.

Filed in the U.S. District Court for the Central District of California, the SoundExchange Sonos Napster $3M royalties lawsuit alleges that Sonos and Napster failed to submit required royalty payments and financial reports for the streaming service between October 2022 and April 2023. Despite ongoing operations during this period, SoundExchange claims no payments were made.

According to the complaint, Sonos Radio, launched in April 2020 and initially powered by Napster’s streaming catalog, remained active even after Napster’s acquisition by venture capital firms Hivemind and Algorand in 2022, and by Infinite Reality in March 2023. However, both companies reportedly failed to meet their royalty obligations following the change in ownership.

An audit initiated by SoundExchange revealed missing payments totaling $2.27 million in royalties, $384,463 in interest, and $59,473 in audit-related costs. Further unpaid royalties from early 2023 added to the outstanding balance.

“Sonos has attempted to shift blame to its agent Napster,” said SoundExchange in its filing, “but ultimately, Sonos is responsible for ensuring compliance with statutory license terms, including timely royalty payments.”

SoundExchange is represented in the case by Christopher J. Wiener of Coblentz Patch Duffy and Bass LLP. Sonos and Napster have not yet designated legal representation.

The case is titled SoundExchange, Inc. v. Sonos, Inc. et al., Case No. 2:25-cv-05454.