×
You will be redirected back to your article in seconds

Spotify Settles $1.6 Billion Lawsuit From Wixen Publishing

Spotify and Wixen Music Publishing — which sued the streaming giant late last year for a headline-grabbing $1.6 billion — announced today that they have settled the lawsuit. According to the announcement, “The conclusion of that litigation is a part of a broader business partnership between the parties, which fairly and reasonably resolves the legal claims asserted by Wixen Music Publishing relating to past licensing of Wixen’s catalog and establishes a mutually-advantageous relationship for the future.”

While terms of the deal were not disclosed, a source close to the situation told Variety that, not surprisingly, the settlement amount was well short of $1.6 billion. If it were, as a public company Spotify would be obligated to disclose it per SEC rules, which suggests a 5% threshold (e.g. the impact of the event is 5% or more of revenue, earnings, etc) as a starting point.

In the lawsuit, Wixen, which handles titles by Tom Petty, Neil Young, Steely Dan’s Donald Fagen, Weezer’s Rivers Cuomo, Stevie Nicks, and others, alleged that Spotify was using thousands of songs without a proper license and sought damages worth at least $1.6 billion and injunctive relief.

“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.

Despite the size of the damages, Wixen signaled a willingness to settle in its first statement. We’re just asking to be treated fairly,” president Randall Wixen said. “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.”

In Thursday’s announcement, Wixen said, “I want to thank [Spotify cofounder and CEO] Daniel Ek and [Spotify General Counsel and VP, Business & Legal Affairs] Horacio Gutierrez, and the whole Spotify team, for working with the Wixen team, our attorneys and our clients to understand our issues, and for collaborating with us on a win-win resolution.  Spotify is a huge part of the future of music, and we look forward to bringing more great music from our clients to the public on terms that compensate songwriters and publishers as important partners. I am truly glad that we were able to come to a resolution without litigating the matter.  Spotify listened to our concerns, collaborated with us to resolve them and demonstrated throughout that Spotify is a true partner to the songwriting community”

“We’d like to thank Randall Wixen and Wixen Music Publishing for their cooperation in helping us reach a solution,” said Gutierrez. “Wixen represents some of the world’s greatest talents and most treasured creators, and this settlement represents its commitment to providing first-rate service and support to songwriters while broadening its relationship with Spotify.”

Todd Spangler contributed reporting to this article. 

More Biz

  • Pete Frates, who is stricken with

    Pete Frates, Inspiration for The Ice Bucket Challenge, Dies at 34

    Pete Frates, the inspiration behind 2014’s wildly successful ALS movement, the Ice Bucket Challenge, died on Monday. He was 34.  The historic Ice Bucket campaign raised over $115 million to combat ALS, or Lou Gehrig’s disease, which Frates also suffered from.  “Pete never complained about his illness,” his family said in a statement.  “Instead, he [...]

  • CBS HEADQUARTERS

    ViacomCBS Will Explore Sale of Black Rock CBS Headquarters

    ViacomCBS will explore the sale of the famous Black Rock building, which has served as the headquarters of CBS since the mid 1960s. Bob Bakish, CEO of the company, which was created last week from the merger of CBS Corp. and Viacom Inc., said the newly combined entertainment conglomerate would explore the sale of sundry [...]

  • The recipients of the 42nd Annual

    Heartfelt Tributes Trump Politics at Kennedy Center Honors

    WASHINGTON, D.C. — Political chatter was kept to a minimum Sunday night as the Kennedy Center Honors presented elaborate tributes to “Sesame Street” — made more poignant by the death of legendary puppeteer Caroll Spinney earlier in the day — as well as Sally Field, Linda Ronstadt, Earth, Wind and Fire and conductor Michael Tilson [...]

  • Chris Cornell’s Widow Sues Soundgarden

    Chris Cornell’s Widow Sues Soundgarden Over Royalties, Unreleased Recordings

    A long-simmering battle between Chris Cornell’s widow and the other members of Soundgarden broke into the open Monday morning when Vicky Cornell announced that she is suing the group over hundreds of thousands of dollars in allegedly unpaid royalties and the rights to seven unreleased recordings made before the singer’s death in May of 2017. [...]

  • Stephen Colbert Julia Louis-Dreyfus

    Julia Louis-Dreyfus Talks 'Seinfeld,' 'Sexist' Environment at 'SNL' in Q&A With Stephen Colbert

    Stephen Colbert and Julia Louis-Dreyfus swapped stories about “Saturday Night Live,” Northwestern University, “Seinfeld” and the possibility of running for office during a Q&A held Saturday as part of Montclair Film Festival’s annual “Evening with Stephen Colbert” fundraiser. Colbert, a Montclair resident, has long been a booster of the festival, which is going into its [...]

  • 2019 Kennedy Center Honoree singer Linda

    Linda Ronstadt to Mike Pompeo: Stop 'Enabling' Donald Trump

    WASHINGTON, D.C. — Linda Ronstadt, one of this year’s Kennedy Center Honorees, had sharp words for Secretary of State Mike Pompeo on Saturday night during a State Department reception for the Kennedy Center kudos. Ronstadt and Pompeo faced off in the U.S. State Department’s ornate diplomatic greeting rooms at the traditional event that precedes Sunday’s [...]

  • pharrell brain child show

    'Blurred Lines' Flares Up Again - Marvin Gaye Family Claims Pharrell Perjured Himself

    Like a zombie that just won’t stay dead, the “Blurred Lines” case keeps coming back. While the 2015 verdict, in which Pharrell Williams, Robin Thicke and the song’s publisher were ordered to pay nearly $5 million to Marvin Gaye’s family for infringing upon the late singer’s 1977 hit “Got to Give It Up,” was basically [...]

More From Our Brands

Access exclusive content