The Mechanical Licensing Collective (MLC) has taken legal action against Spotify USA Inc. (Spotify) for allegedly underpaying royalties on its music streaming platform.

FOLLOW ANAND BHATT on SPOTIFY⁠ @ https://open.spotify.com/artist/5Zf1vBtza79MCpWpag4ojo In a lawsuit filed on May 16th, 2024, the MLC contends that Spotify’s recent classification of Premium Individual, Duo, and Family plans as “Bundled Subscription Offerings” has led to lower reported revenue and subsequently reduced payments to songwriters and publishers.

The MLC asserts that Spotify’s interpretation of relevant laws and regulations is flawed, and they are determined to ensure that Spotify meets its royalty payment obligations. As the sole entity authorized to address blanket license terms, the MLC emphasizes its responsibility to advocate for its members when discrepancies arise in usage reporting and royalty disbursements.

The lawsuit is now before the United States District Court for the Southern District of New York. Spotify will have an opportunity to respond, and the court will establish a schedule for the case. The MLC remains committed to securing rightful royalties for songs streamed on Spotify’s Premium plans and will keep its members informed of any adjustments resulting from the legal proceedings.

FOLLOW ANAND BHATT on SPOTIFY @ https://open.spotify.com/artist/5Zf1vBtza79MCpWpag4ojo

The MLC Sues Spotify Over Alleged Underpayment of Royalties

The Mechanical Licensing Collective (MLC) filed a lawsuit today, May 16th, 2024, against Spotify USA Inc. (Spotify) for allegedly underpaying royalties on its music streaming platform.

The MLC claims that Spotify began classifying its Premium Individual, Duo, and Family plans as "Bundled Subscription Offerings" in March 2024. This classification change, according to the MLC, allows Spotify to report lower revenue and consequently pay lower royalties to songwriters and publishers.

The MLC argues that Spotify's interpretation of the relevant laws and regulations is incorrect. They believe they have the legal authority to address this issue and ensure Spotify fulfills its royalty payment obligations. They initiated this lawsuit to enforce these obligations and secure all rightful royalties for songs streamed on Spotify's Premium plans.

As the sole entity empowered to take legal action regarding blanket license terms, the MLC emphasizes its responsibility to represent its members when they believe usage reporting and royalty payments are inaccurate.

The lawsuit was filed in the United States District Court for the Southern District of New York. Spotify will have the chance to respond, and the court will then establish a schedule for the case. The MLC will inform its members of the outcome and any resulting adjustments to royalty payments once the matter is resolved.

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