Latest in Entertainment

Image credit: Flickr/Bjrn Olsson

Spotify is on the hook for $150 million in class-action suit

Two artists claim that Spotify knowingly avoids paying royalties to some musicians.
9 Shares
Share
Tweet
Share
Save

Sponsored Links

Flickr/Bjrn Olsson

A class-action lawsuit filed this week claims that Spotify knowingly and willingly distributes songs without obtaining the proper, mechanical licenses, Billboard reports. The suit, filed by the band Camper Van Beethoven and Cracker frontman David Lowery on December 28th, seeks $150 million in damages. The artists launched a class-action suit because Spotify's actions affect more than 100 people, according to the complaint.

Spotify recently penned a blog post that lays out the complicated music-licensing landscape, noting that it's paid out more than $3 billion in royalties since launching. It has a store of money set aside to pay outstanding fees, too -- Billboard says this reserve fund contains between $17 million and $25 million.

"When we confirm the rightsholder, we pay those royalties as soon as possible," Spotify writes in its blog post. "To put this all in context, the royalties we have set aside amount to a fraction of one percent of all the royalties we have paid."

Spotify is working to settle a similar suit with the National Music Publishers Association.

[Image credit: Flickr/Björn Olsson]

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
9 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
Three Mile Island's infamous nuclear plant shuts down after 45 years

Three Mile Island's infamous nuclear plant shuts down after 45 years

View
Samsung asks users to be extra careful with the Galaxy Fold

Samsung asks users to be extra careful with the Galaxy Fold

View
Uber sues NYC over vehicle caps

Uber sues NYC over vehicle caps

View
Australia will help NASA go to the Moon and Mars

Australia will help NASA go to the Moon and Mars

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr