Home Music Business Spotify Settles $200 Million Class-Action Lawsuit

Spotify Settles $200 Million Class-Action Lawsuit

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Spotify Settles $200 million Class Action Lawsuit

The music streaming giant Spotify has been pretty busy this Spring. And now it seems the company has settled a $200 million class-action lawsuit brought by a coalition of songwriters. Spotify settled the suit with a $43.3 million dollar fund, which has yet to be claimed.

The fund is intended to cover unpaid mechanical royalties by the streaming music giant. The settlement is said to be a smart move by Spotify, as they retain funds in Escrow until payouts are needed/claimed.

Digital Music News reports:

Mechanical licenses are a specific type of publishing license.  They cover the specific act of reproducing a work, and were the centerpiece of this (and other) legal actions for non-payment by Spotify.

Spotify attorneys continuously attempted to derail the class actions.  Those derailments involved a cozy handshake settlement with the largest publishers.  Those publishers, represented by the National Music Publishers’ Association (NMPA), forged a $30 million payout tranche that absolved serious oversights by NMPA-owned Harry Fox Agency.  Most importantly, the settlement also required any participating songwriter or publisher to waive all rights to future litigation.

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Omar Zulfi is a Hip-Hop artist, music producer and entrepreneur from Canada. He is the owner of Deviant Noise Inc. - a one-stop-resource for independent music artists, producers and songwriters - and an independent marketing consultant. He can be contacted at [email protected]

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