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Spotify sued over songwriter rights | Spotify sued over songwriter rights |
(35 minutes later) | |
Spotify has been hit with a lawsuit that accuses the streaming service of infringing the rights of songwriters and publishers. | Spotify has been hit with a lawsuit that accuses the streaming service of infringing the rights of songwriters and publishers. |
Wixen Music Publishing is seeking damages of at least $1.6bn (£1.18bn) - $150,000 for more than 10,000 songs. | Wixen Music Publishing is seeking damages of at least $1.6bn (£1.18bn) - $150,000 for more than 10,000 songs. |
The California company represents artists that include Janis Joplin, The Black Keys and Tom Petty. | The California company represents artists that include Janis Joplin, The Black Keys and Tom Petty. |
Spotify declined to comment. The firm has been trying to settle a class action lawsuit brought by songwriters. | Spotify declined to comment. The firm has been trying to settle a class action lawsuit brought by songwriters. |
That lawsuit, which deals with similar copyright issues, was on course to being resolved in December. | That lawsuit, which deals with similar copyright issues, was on course to being resolved in December. |
But a group that included Wixen objected to the terms of the roughly $43bn settlement, which they argued could yield less than $4 per song. | But a group that included Wixen objected to the terms of the roughly $43bn settlement, which they argued could yield less than $4 per song. |
What is Spotify alleged to have done? | What is Spotify alleged to have done? |
In recent years, Spotify has struck deals with major record labels, resolving potential copyright liabilities. | In recent years, Spotify has struck deals with major record labels, resolving potential copyright liabilities. |
The deals have been an important new source of revenue for the music industry, which has contracted sharply over the last 15 years. | The deals have been an important new source of revenue for the music industry, which has contracted sharply over the last 15 years. |
In its new lawsuit, filed at the end of December in a federal court in California, Wixen said Spotify failed to also address the claims of songwriters and publishers, which have separate rights to the compositions. | In its new lawsuit, filed at the end of December in a federal court in California, Wixen said Spotify failed to also address the claims of songwriters and publishers, which have separate rights to the compositions. |
Wixen said: "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: "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." |
Spotify reached a reported $30m settlement with the National Music Publishers Association in 2016 over similar claims. | Spotify reached a reported $30m settlement with the National Music Publishers Association in 2016 over similar claims. |
But the issue continues to trouble the firm, which is gearing up to list its shares on the stock market. | |
In addition to the new Wixen dispute and the pending class-action suit, Spotify also faces legal actions filed by Bob Gaudio and Bluewater Music Corporation in July. Other firms have also filed suit. | |
In the July cases, Spotify has argued that the claims are invalid and its use of the music is allowed under implied licenses, among other reasons. |