NEWS
04/26/2016 09:29 EDT | Updated 04/27/2017 01:12 EDT

Sirius XM Canada seeking arbitration in license agreement dispute

TORONTO — Sirius XM Canada Holdings Inc. (TSX:XSR) says it will seek binding arbitration to settle a dispute with Sirius XM Radio Inc. over US$33.9 million in activation fees.

The satellite radio companies disagree on the fees owed under the XM license agreement.

The U.S. company has demanded the Canadian firm pay the money it says it is owed under the deal from 2005 to the end of January 2016.

Sirius XM US also wants its methodology to be used for calculating activation fees from February onwards.

However, Sirius XM Canada said it believes its interpretation of the agreement and calculation of activation fees is correct.

 

 

 

The Canadian Press