Latest in Gear

Image credit: Chesnot via Getty Images

Spotify’s latest acquisition might help fix its royalty problem

Loudr’s technology helps companies track and pay royalties to music publishers.
151 Shares
Share
Tweet
Share
Save

Sponsored Links

Chesnot via Getty Images

Spotify announced today that it has purchased Loudr, a San Francisco-based company whose services, according to Spotify, "make it easy for content creators, aggregators and digital music services to identify, track and pay royalties to music publishers." Loudr describes its technology as "big data for music rights" and it uses algorithms to connect sound recordings to compositions. For music publishers, it can match their catalog to usage and make sure they're getting the proper amount of royalties.

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.

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
151 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
Google Chrome now offers better theme customization and tab grouping

Google Chrome now offers better theme customization and tab grouping

View
Leaked screenshots show how Apple's tracker tags might work

Leaked screenshots show how Apple's tracker tags might work

View
Tesla targets Nürburgring EV record next month

Tesla targets Nürburgring EV record next month

View
Mark Zuckerberg visited Donald Trump at the White House

Mark Zuckerberg visited Donald Trump at the White House

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr