Spotify Facing $150 Million Lawsuit Over Unpaid Music Royalties! Is This The Beginning Of The End??

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A little music streaming drama may soon impact how you listen to tunes!

Spotify was just hit with a $150 million class-action lawsuit led by musician David Lowery, the frontman to bands Camper Van Beethoven and Cracker.

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Lowery’s suit argues Spotify knew about and willingly reproduced and distributed copyrighted compositions without obtaining mechanical licenses — fancy talk for basically arguing that Spotify played and promoted music without providing legal remuneration to the artists.

What’s it all mean?

Well, this class-action suit comes in the middle of a tough time for Spotify, as the company is also in the middle of a settlement negotiation with the National Music Publishers Association over properly licensing music and making full royalty payments to musicians and performers.

In that settlement, according to reports, Spotify is likely to create a reserve fund as large as $25 million that will go towards paying for royalties of the songs the music streaming services makes available.

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Now, the $150 million class-action suit only makes the road more muddy for Spotify. The company’s global head of communications and public policy, Jonathan Prince, said in a statement:

“We are committed to paying songwriters and publishers every penny. Unfortunately, especially in the United States, the data necessary to confirm the appropriate rightsholders is often missing, wrong, or incomplete. When rightsholders are not immediately clear, we set aside the royalties we owe until we are able to confirm their identities. We are working closely with the National Music Publishers Association to find the best way to correctly pay the royalties we have set aside and we are investing in the resources and technical expertise to build a comprehensive publishing administration system to solve this problem for good.”

We’ll see if Prince’s statement is just corporate public relations talk, or if Spotify actually means it regarding compensating artists and navigating the music streaming world…

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Whatever the case, Lowery may be tied up in court for quite a while if he hopes to recoup $150 million for artists!

What do U think about Spotify being sued like this?! Let us know in the comments (below)!

[Image via Spotify]

Dec 29, 2015 5:53pm PDT

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