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Spotify Sued For Unpaid Royalties

HandelontheLaw.com Staff Writer

Wednesday, January 20, 2016



Spotify Sued For Unpaid Royalties
Copyright

Spotify is a digital music service that streams literally millions of songs for its users in exchange for a monthly fee of $9.99. While Spotify is quick to obtain and stream music it is apparently abysmally slow in paying royalties for the copyrighted music it offers.

On December 28, 2015, Spotify was sued by David Lowery, a musician and front man for bands called “Cracker” and “Camper van Beethoven.” The suit is brought in behalf of Lowery and 100 other musicians, seeking a minimum of $150 million in damages. A brief explanation of Lowery’s class action is accessible on YouTube: https://www.youtube.com/watch?v=oMi0IJmUqbQ

Statutes regarding copyright violations allow penalties of $750 - $30,000 per infringed work and in the case of willful infringement, as much as $150,000 per song. Lowery’s class action suit also alleges that Spotify has already acknowledged its failure to pay royalties and established a reserve fund of $17 - $25 million for royalties “wrongfully withheld from artists.”

Spotify apparently just can’t get the hang of paying royalties. It is currently attempting to settle another such case brought by National Music Publishers and was previously sued by record labels including “Ministry of Sound” and “Victory Records.”

Though the suit, filed in the Central District Court of California, is in its earliest stages, Spotify’s apparent admission on its own site that it has a problem paying musicians “fairly, rapidly and transparently” should rapidly move Lowery’s class action to settlement negotiations.


By Kathy Catanzarite


Source: Kathy Catanzarite - Handelonthelaw.com Writer

Note from HandelontheLaw.com: This article is to be used as an educational guide only and should not be interpreted as a legal consultation. Readers of this article are advised to seek an attorney if a legal consultation is needed. Laws may vary by state and are subject to change, thus the accuracy of this information can not be guaranteed. Readers act on this information solely at their own risk. Neither the author, handelonthelaw.com, or any of its affiliates shall have any liability stemming from this article.





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