Wixen Music Publishing has filed a lawsuit against Spotify in the US in early January 2018, based on claims that the streaming service has not “adequately paid mechanical licenses for song compositions”.

According to a report from The Hollywood Reporter the plaintiff seeks damages of “at least (sic) $1,6 billion plus injunctive relief”. Documents available claim that up to 21 percent of the 30 million songs on Spotify are unlicensed.

Why this matters: Music distribution has shifted dramatically from sales of records, tapes or CDs to internet distribution. Spotify, Apple Music and some other companies in this space have been successful in convincing consumers that paying a monthly fee for a huge library of music is better than buying physical products or even digital copies based on a song-by-song purchase pattern.

Specifically disputed in the lawsuit are ”

Bloomen take: The lawsuit itself will be complicated and drag on a for a while. But the sheer amount of alleged damages will put pressure on finding a new, better way to handle music licenses in a way which is transparent and satisfies both platform companies like Spotify and the rights holders or their agents.

Link to source:

Eriq Gardner ( The Hollywood Reporter): “Spotify Hit with $1,6 Billon Copyright Lawsuit Over Tom Petty, Weezer, Neil Young Songs”, published: January 2, 2018m retrieved January 3, 2018. URL: https://www.hollywoodreporter.com/thr-esq/spotify-hit-16-billion-copyright-lawsuit-tom-petty-weezer-neil-young-songs-1070960