TORONTO – SiriusXM Canada said Tuesday that it has received a demand for payment of US$33.9 million from Sirius XM Radio Inc. for "activation fees".
According to the company’s statement, the fees fall under the XM Licence Agreement owed from 2005 to the end of January, 2016. Sirius XM US has also made a demand for its methodology to be used for calculating activation fees from February, 2016 onwards for the remainder of the current term of the XM Licence Agreement.
SiriusXM Canada added that it and Sirius XM US have not agreed on the activation fees owed under the XM Licence Agreement, and that it is confident in its interpretation of the XM Licence Agreement and the calculation of the activation fees thereunder. It also said that it intends to seek resolution of this matter through binding arbitration under the terms of the XM Licence Agreement.
The company said that it does not intend to comment further upon this matter unless and until it deems further disclosure is appropriate or required by law.
