Rdio seeks OK of $1.2 million deal with royalty calculation company

By Caroline Salls

Pittsburgh, June 6 – Rdio, Inc. requested court approval of a termination and mutual release agreement under which Music Reports, Inc. will have a $1.2 million claim against the company, according to a motion filed June 3 with the U.S. Bankruptcy Court for the Northern District of California.

Rdio said it entered into an agreement with Music Reports under which Music Reports calculated and paid music publishing royalties on Rdio’s behalf.

Rdio said it also entered into a transition services agreement, under which asset purchaser Pandora Media, Inc. would make some recorded information and former employees of Rdio available for the purpose of providing information required for the calculation and reporting of the royalties.

In order to calculate the post-bankruptcy royalties that are the subject of the Music Reports business agreement, the company said it requires both the services of Music Reports and the information available under the Pandora transition agreement.

As a result, Rdio said it entered into the proposed termination agreement with Music Reports. In addition to the claim awarded to Music Reports, the termination agreement calls for the calculation and payment of significant post-bankruptcy royalties to publishers and for the resolution of all other matters between the parties.

A hearing is scheduled for June 24.

Rdio is a San Francisco-based licensed music service. The company filed for bankruptcy on Nov. 16, 2015 under Chapter 11 case number 15-31430.

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