Spotify hit with $1.6 billion lawsuit

Spotify hit with $1.6 billion lawsuit

Spotify hit with $1.6 billion lawsuit

The suit was filed on December 29, with Wixen Music Publishing claiming that the streaming service used Petty's "Free Fallin", the Doors' "Light My Fire", and thousands of other songs without a license and compensation. Wixen is seeking at least $1.6 Billion as well as injunctive relief from Spotify in the lawsuit.

After Tom Petty passed away in October, music fans headed to Spotify in droves to listen to his music and sample the featured playlists that the streaming service created in his honor. What Spotify failed to do, according to the lawsuit, was "obtain the equivalent rights for the compositions".

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The complaint alleges that as much as 21 percent of the 30 million songs on Spotify are not licensed for use.

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"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", Wixen said. They're arguing that Wixen's contract with their songwriters won't let them take legal actions on the songwriters behalf.

The streaming company has faced a string of lawsuits in recent months, and in May agreed to a $43 million settlement with songwriters and publishers in response to a proposed class-action suit that accused the company of failing to pay royalties.

In that settlement, Spotify admitted to failing to obtain necessary statutory licenses to reproduce and/or distribute musical compositions on its platform, the lawsuit says.

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