Juiza filed the lawsuit on Wednesday, months after Spotify was prosecuted for reducing composers’ royalties by including audiobooks in their premium signature
THE Spotify He was victorious in a lawsuit against the company last year because of a controversial package strategy, which resulted in the reduction of royalties payments to composers.
A federal judge filed the action on Wednesday, which marked a significant victory for Spotify in his dispute with the musical publication industry. The process began in 2023, when the platform introduced a new audiobook package into its premium signature. With this change, Spotify began to pay a lower royalties fee to composers, arguing that the decision was in accordance with an agreement signed with musical publishers in 2022 through the Copyright Royalty Board. The agreement allowed streaming services to pay less when offering signatures that combined music with other products.
THE Mechanical Licensing Collective (MLC), a non -profit organization responsible for granting mechanical licenses for streaming services, sued Spotify in May 2024, claiming that the platform classified the package incorrectly and unilaterally reduced rates by up to 50%without any notice.
In the memorandum presented on Wednesday, the court concluded that Spotify was within his rights, stating that the rule of packages was “unequivocal”.
The only plausible application of the law supports the position of Spotify ”, Wrote the judge analyzes Torres. “Based on the facts presented, audiolivros streaming is a distinct product or service from music stream and has more than a symbolic value. Premium service, therefore, is correctly categorized as a package, and the allegations of the action do not suggest plausibly the opposite. ”
The dispute has become one of the fiercest clashes in the music industry last year, with defenders criticizing the practice for devaluing composers, who are already having difficulty making profit in the streaming age.
The MLC filed this action to contest Spotify’s unprecedented measures to significantly report less royalties to the MLC, ” declared the organization in a statement. “We are still concerned that Spotify’s actions are not aligned with the legislation and that today’s decision is not in accordance with the central facts and legal principles of this case. We are analyzing the decision and evaluating all available options, including our right to appeal. ”
In response to Rolling Stonea Spotify spokesman celebrated the decision:
We are pleased with this result, which demonstrates that after a careful court review, Spotify’s premium service was correctly classified as a package and offers valuable content alongside the song. “
The decision occurs a few days after Spotify closes a new agreement with the Universal Music Group and its publication division, UMPG. At the beginning of the week, David IsraeliteCEO of National Music Publishers’ Associationhe classified the new contract as “a clear sign that Spotify felt the negative repercussion of his package strategy.”
Spotify mentioned this new agreement in its statement about the filing of the process on Wednesday:
“We know that regulations can be complex, but there is room for collaboration”said the company.
This article is a translation of the American Rolling Stone, written by Ethan Millman and published on January 29, 2025. Read the original version here.
Source: Rollingstone
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
