Spotify facing $1.6B lawsuit from Tom Petty, Neil Young's publisher

Spotify Kicks Off Their New Year With A Massive Lawsuit And More Of The Same Problems

Wixen Music Publishing filed the $1.6 billion lawsuit against Spotify on December 29th.

In the complaint, Wixen alleges that Spotify is guilty of streaming 10,874 songs they administer without proper licensing or compensation and is seeking $150,000 per song to bring the total award up to $1.6 billion.

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"Prior to launch, Spotify struck deals with major record labels to obtain the necessary rights to the sound recording copyrights in the songs by offering the major labels, in many cases, equity stake in Spotify", Wixen said in its lawsuit. In addition, Spotify will also have to create some sort of method to identify and license songs properly. They're arguing that Wixen's contract with their songwriters won't let them take legal actions on the songwriters behalf.

Wixen's lawsuit comes six months after Spotify reached a proposed $43.4 million settlement to resolve a class-action lawsuit with songwriters and publishers led by David Lowery and Melissa Ferrick.

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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.

"As a direct and proximate result of Spotify's willful and infringing conduct, Wixen is entitled to actual damages, including the substantial profits of Spotify", the suit reads. Overall, Wixen alleges, more than 6 million of Spotify's songs are improperly licensed, representing about a fifth of its catalog. I'll update this story if I hear back.

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