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Spotify Gets Slapped with a $1.6 Billion Copyright Lawsuit

The music streaming service Spotify will have to face the music in a $1.6 billion copyright lawsuit which has been filed against them for allegedly playing thousands of songs without permission.

It was announced earlier this week that Wixen Music Publishing, a song licensee, had file charges against the streaming service platform alleging use of songs from artists such as Tom Petty, Neil Young and The Doors without obtaining the proper licensing or without issuing proper compensation to do so.

In the lawsuit, Wixen states:

“Prior to launch, Spotify struck deals with major record labels to obtain the necessary rights to the sound recording copyrights in the songs by offering the major labels, in many cases, equity stake in Spotify but Spotify failed to properly obtain the equivalent rights for the compositions. As a result, Spotify has built a billion-dollar business on the backs of songwriters and publishers whose music Spotify is using, in many cases without obtaining and paying for the necessary licenses.”

In May of last year, Spotify agreed to pay more than $43 million as a settlement in a class-action suit filed by songwriters who were also accusing the company of not having proper licensing and not issuing proper compensation.

At this time, Spotify has declined to comment on the lawsuit or allegations in question.

What do you think about this latest controversy in streaming music?  Let us know your thoughts in the comment section below!


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Source: CNet