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.