Spotify allegedly used a legalistic word change to justify slicing royalties to musicians and publishers, reducing the revenue on which royalties are based by almost 50%.
potify Technology SA used a legalistic word change to justify slicing royalties to musicians and publishers, reducing the revenue on which royalties are based by almost 50%, according to lawsuit filed by the group that collects their payments.
Spotify said it looks forward to “swift resolution” of the lawsuit, which it said concerns terms that publishers and streaming services “agreed to and celebrated years ago.” The National Music Publishers’ Association on Wednesday sent a cease-and-desist letter to Spotify over products it claims are infringing on songwriters’ copyrights. The NMPA alleges that music videos, lyrics and podcasts on the platform are all using copyrighted music without the proper permissions.
Music and audiobook streaming companies, like Spotify, pay musicians and music publishers under a complex system set out in 2018 by the Music Modernization Act of 2018. Under the system, streaming services pay less per stream—in other words, less to creators and publishers—when their services are classified as bundles.
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