×
You will be redirected back to your article in seconds

Spotify Hit With $1.6 Billion Lawsuit From Publisher Representing Tom Petty, Neil Young, Others

UPDATED: Spotify has been hit with a $1.6 billion lawsuit from Wixen Music Publishing, which handles titles by Tom Petty, Neil Young, Steely Dan’s Donald Fagen, Weezer’s Rivers Cuomo, Stevie Nicks, and others. The suit, which alleges that Spotify is using thousands of songs without a proper license, was filed on Dec. 29 in California federal court. It is seeking damages worth at least $1.6 billion and injunctive relief.

Spotify has been plagued by complaints and legal action from the music-publishing industry, which widely feels that labels are getting the fairer share of royalties from the company. In May the company proposed a $43 million settlement to resolve a class-action suit from a collective of songwriters, including David Lowery and Melissa Ferrick, that in September was lambasted as being inadequate by a group of songwriters and actors; more lawsuits ensued.

Wixen’s lawsuit says the proposed settlement “does not adequately compensate Wixen or the songwriters it represents.” The suit continues, “Prior to launching in the United States, Spotify attempted to license sound recordings by working with record labels but, in a race to be first to market, made insufficient efforts to collect the required musical composition information and, in turn, failed in many cases to license the compositions embodied within each recording or comply with the requirements of Section 115 of the Copyright Act. Either a direct license from Wixen or a compulsory license would have permitted Spotify to reproduce and/or distribute the Works as part of the Service, including by means of digital phonorecord deliveries (“DPDs”), interactive streaming, and limited downloads. But Spotify failed to obtain either license type,” and instead outsourced that role to the Harry Fox Agency, which the suit says “Spotify knew … did not possess the infrastructure to obtain the required mechanical licenses and Spotify knew it lacked these licenses.”

Spotify filed court papers on Friday that questioned whether Wixen’s clients had authorized the company to take that action, claiming that it had given its clients only a brief opt-out period before their names would be included in the suit.

In a statement released Tuesday afternoon, company president Randall Wixen clarified that it and its clients are not taking part in the Music Modernization Act introduced late in December, which aims to simplify digital licensing and increase rates, or joining the class-action suit “in part because of their belief that the proposed settlement is inadequate, because too much of the settlement is going to legal fees, and because the terms of the go-forward license in the settlement are not in their long-term best interests.” Instead, the company says it “was and is desirous of sitting down with Spotify to work out an amicable settlement for its past infringements and unlicensed uses, and seeks to work out a go-forward license which is fair to all parties.

We’re just asking to be treated fairly,” he continued. “We are not looking for a ridiculous punitive payment. But we estimate that our clients account for somewhere between 1% and 5% of the music these services distribute. Spotify has more than $3 billion in annual revenue and pays outrageous annual salaries to its executives and millions per month for ultra-luxurious office space in various cities. All we’re asking for is for them to reasonably compensate our clients by sharing a miniscule amount of the revenue they take in with the creators of the product they sell.”

A rep for Spotify declined Variety’s request for comment.

(Pictured: Spotify CEO Daniel Ek.)

More Digital

  • Fortnite Battle Royale

    Epic Pulls 'Fortnite' Ads From YouTube After Child Predator Controversy

    Epic Games is no longer running “Fortnite” pre-roll ads on YouTube after it was discovered they were playing on videos alleged predators used to exploit children, according to The Verge. The developer has paused all of its pre-roll advertising, which plays before a video starts on the streaming platform, a spokesperson said. It also reached [...]

  • New Video Shows Off Vive Cosmos

    New Video Shows Off Vive Cosmos VR Controllers

    There’s still much to be learned about HTC’s Vive Cosmos — like release date, specs, and price — but Wednesday the company released a short teaser video giving a slightly better glimpse of the controllers in action. The new controllers look a bit like rival VR headset Oculus Rift’s Touch controller, though reversed in some [...]

  • YouTube logo

    Disney Reportedly Pulls YouTube Ads Over Child-Exploitation Controversy

    YouTube is facing yet another big advertiser backlash, with Disney and Epic Games among the marketers said to have pulled their ad spending after the Google-owned video platform was accused of facilitating what a critic described as a “soft-core pedophilia ring.” Vlogger Matt Watson, in a Feb. 17 video on his YouTube channel MattsWhatItIs, showed [...]

  • Samsung Galaxy S10, Galaxy S10+ Unveiled

    Samsung Announces Galaxy S10, Galaxy S10+ Phones

    Samsung officially announced its new flagship phones, the Galaxy S10 and its larger sibling, Galaxy S10+, at its Unpacked press event in San Francisco on Wednesday morning. The new phone features a punch-hole cut-out for its front-facing camera, which allowed the company to use an edge-to-edge screen design without the notch found on the latest [...]

  • Samsung's Galaxy Fold Unveiled at Unpacked

    Samsung Announces Galaxy Fold, a $1,980 Foldable Phone

    Samsung officially announced its new foldable phone, dubbed the Galaxy Fold, at its Unpacked press event in San Francisco Wednesday morning. The device features two screens that unfold to a tablet-sized slate. “We are giving you a device that doesn’t just define a new category, it defies categories,” said Samsung senior vice president of product [...]

  • ABC-Oscar-Game

    ABC to Launch Oscars Live Play-Along Game With $50,000 Grand Prize

    ABC is hoping to drive viewers to its host-less telecast of the 91st Academy Awards on Sunday by dangling the promise of cold, hard cash to one lucky winner. The broadcaster is launching “The Official Oscar Game,” a live game that will let viewers play along in real time during the awards presentation. The game’s [...]

  • Dave Finocchio - Bleacher Report

    Bleacher Report Co-Founder Dave Finocchio to Exit This Summer

    Dave Finocchio is leaving Turner’s Bleacher Report, the millennial-skewing digital sports company he co-founded in 2005 and led as CEO for the last three years. With Finocchio set to exit in June, Turner Sports has named Howard Mittman as CEO of Bleacher Report to replace him. Finocchio hired Mittman, who has held a dual role [...]

More From Our Brands

Access exclusive content