What Sirius XM Holdings Inc. told the SEC could break it.

SiriusXM must pay a statutory sound-recording royalty set by the Copyright Royalty Board equal to 15.5% of gross satellite-radio revenue through December 31, 2027; SoundExchange holds significant market power in licensing.

“Under the terms of the Copyright Royalty Board's existing decision governing sound recording royalties for satellite radio, we are required to pay a royalty based on our gross revenues associated with our satellite radio service, subject to certain exclusions, of 15.5% per year through December 31, 2027.”

Export of SiriusXM's satellite-related equipment, services and technical data requires U.S. government licenses, including prohibitions on sharing certain satellite goods and services with China.

“The transfer of such equipment, services and technical data outside the United States or to foreign persons is subject to strict export control and prior approval requirements from the United States government (including prohibitions on the sharing of certain satellite-related goods and services with China).”

Significant tariffs on auto parts and vehicles from China, the EU, Japan, Canada and Mexico could raise vehicle costs and reduce auto sales, indirectly shrinking SiriusXM's factory-installed satellite radio base.

“Significant tariffs on imports from many countries including China, European Union countries, Japan, Canada and Mexico, could have a major impact on the price of auto parts, semi-finished products, components and raw materials and finished vehicles, resulting in declines of vehicle sales by automakers.”

SiriusXM's satellite radio distribution depends on automakers continuing to factory-install its service and provide vehicle data; loss of OEM inclusion or reduced installation penetration would harm the business.

“Our business could be adversely affected if a number of automakers do not continue to include our SiriusXM service in their products or provide us with such data.”