NMPA, Peloton Settle Lawsuit With Joint Collaboration Agreement

The National Music Publishers’ Association (NMPA) and fitness company Peloton have fully settled the litigation brought last year by 14 NMPA members. In addition, the two have entered into a joint collaboration agreement and will work together to further optimize Peloton’s music licensing systems and processes.

Plaintiff publishers included Downtown Music Publishing, Anthem Entertainment, Big Deal Music, Pulse Music Group, peermusic, Greensleeves Publishing, Me Gusta Music, Reservoir Media Management, The Richmond Organization (TRO), Round Hill Music, The Royalty Network, STB Music, Tunecore and Ultra Music Publishing. The case was Downtown Music Publishing LLC v. Peloton Interactive, Inc. (1:19-cv-02426-DLC) District Court, S.D. New York.

The publishers filed a $370 million lawsuit in March 2019, alleging that exercise bicycle manufacturer Peloton—which boasts more than 2 million members and streams instructor-led classes for members—used more than 1,000 music compositions without acquiring proper licenses. Peloton brought a counterclaim, alleging that the publishers engaged in anti-competitive practices, and that the NMPA had worked to prevent Peloton from securing agreements with companies individually; however, Peloton’s counterclaim was dismissed in January of this year.

“We are pleased the music publishers and their songwriter partners in this case have reached a settlement with Peloton that compensates creators properly and sets forth the environment for a positive relationship going forward,” said NMPA President & CEO David Israelite. “Peloton is an innovative company, and we are impressed with the company’s investment in technology and commitment to delivering a powerful, authentic music experience. We look forward to our ongoing collaboration to find solutions that will benefit all songwriters.”

“Music is an important part of the Peloton experience, and we are very proud to have pioneered a new revenue stream for recording artists and songwriters,” said Peloton’s Head of Music Paul DeGooyer. “We’re equally proud to partner with David and the NMPA to ensure that songwriters are, and continue to be, fairly compensated. With the NMPA’s input, we are confident our proprietary, state-of-the-art music system will provide an even more dynamic fitness experience for our millions of members worldwide.”

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Lorie Hollabaugh

Hollabaugh, a staff writer at MusicRow magazine, has over 20 years of music business experience and has written for publications including American Profile, CMA Close Up, Nashville Arts And Entertainment, The Boot and Country Weekly. She has a Broadcast Journalism and Speech Communication degree from Texas Christian University, (go Horned Frogs), and welcomes your feedback or story ideas at lhollabaugh@musicrow.com.

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