Mood Media Announces Update to Court Proceedings Involving Its Subsidiary Muzak LLC
April 26 2017 - 7:00AM
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170426005528/en/
Mood Media CorporationInvestor Relations:Randal Rudniski, +1
512-592-2438randal.rudniski@moodmedia.comorMedia Relations:Scott
Moore, +1 512-583-8686scott.moore@moodmedia.com