This is a useful acquisition for Spotify which has struggled with licensing and adequate payments in the past. Currently, the company faces a $1.6 billion lawsuit filed by Wixen Music Publishing. In 2016, Spotify struck an agreement with the National Music Publishers Association to pay $21 million for previously unpaid royalties. And last July, Spotify was hit with two lawsuits over royalty disputes after settling a class action suit for $43.5 million in May.
Spotify has tried to do better when it comes to accurately tracking and paying royalties. It acquired Mediachain for that purpose last year, a company that manages music ownership information through a blockchain-secured database. It also began limiting its free streaming option.
Spotify said the Loudr team will join its New York offices. "What Loudr has built is more than just a smart and easy way for artists to obtain mechanical licenses; it's true music industry innovation," Adam Parness, Spotify's global head of publishing, said in a statement.