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Spotify being sued again over unpaid royalties

Written by Andre Yoskowitz (Google+) @ 02 Jan 2016 21:47 User comments (2)

Spotify being sued again over unpaid royalties Cracker frontman David Lowery has filed a class action lawsuit against Spotify seeking, at least, $150 million in damages over unpaid royalties.
The artist claims that the streaming service "knowingly, willingly, and unlawfully reproduces and distributes copyrighted compositions without obtaining mechanical licenses."

In the complaint, it is alleged that Spotify has unlawfully distributed music to 75 million users but "failed to identify or locate the owners of those compositions for payment." It is pretty clear that Spotify knows this is true, as they have set aside $30 million for payments, likely making this lawsuit redundant.

"We are committed to paying songwriters and publishers every penny," adds Spotify global head of communications and public policy Jonathan Prince in a statement. "Unfortunately, especially in the United States, the data necessary to confirm the appropriate rightsholders is often missing, wrong, or incomplete. When rightsholders are not immediately clear, we set aside the royalties we owe until we are able to confirm their identities. We are working closely with the National Music Publishers Association to find the best way to correctly pay the royalties we have set aside and we are investing in the resources and technical expertise to build a comprehensive publishing administration system to solve this problem for good."

Source:
Billboard

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2 user comments

14.1.2016 22:00

Intelligible answer!

I was gonna rip Spotify a new one thinking that GENERALLY American biz is first to be mistrusted but the answer provided by Spotify was right on and firmly acceptable and frankly...reasonable as reasonable gets.

Cracker better get some proof!

25.1.2016 13:54

Possibly, but Spotify's response is actually rather weak. Why? Because it sounds exactly like the excuses record companies use to bilk musicians out of their fair share of the profits.

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