• ABOUT
    • Contact
    • The Team
    • FAQ
    • Use & Privacy Policy
  • ADVERTISE
  • ROWFAX
  • JOB LISTINGS
MusicRow.com
  • CALENDARS
    • Album/EP Releases
    • Single/Track Releases
    • Industry Events
    • Upcoming Concerts
  • OBITS
  • CHARTS
    • Radio Chart (Current)
    • Radio Chart (Archives)
    • No. 1 Challenge Coin
    • Songwriter Chart (Current)
    • Songwriter Chart (Archives)
  • REVIEWS
  • MY STORY
  • NEWSLETTER
    • Newsletter (Current)
    • Newsletter (Archives)
    • SIGN UP (FREE!)
  • SUBSCRIBE
  • STORE
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Spotify Wins MLC Lawsuit Over Bundling Royalties

January 29, 2025/by LB Cantrell

Spotify has won a legal battle against The Mechanical Licensing Collective (MLC), with a federal judge ruling in favor of the streaming giant’s revised royalty structure.

The MLC filed a lawsuit last year, accusing Spotify of unlawfully cutting its royalty payments nearly in half by bundling audiobooks with its premium subscription service.

In a decision issued Wednesday (Jan. 31), Judge Analisa Torres ruled that Spotify’s approach was permitted under federal regulations, stating that audiobook streaming constitutes a distinct product with more than “token value,” according to a report from Billboard.

“MLC cannot plausibly claim that having access to audiobooks is not something of intrinsic and monetary value to many, even if only a fraction of Spotify’s millions of Premium subscribers may take advantage of it,” the judge wrote. “The court can draw only one conclusion: that 15 hours of monthly audiobook streaming is a product or service that has more than token value.”

The ruling solidifies Spotify’s ability to pay a lower “bundled” rate under federal royalty guidelines, rejecting MLC’s argument that the company’s offering did not constitute a true bundle.

“We are extremely disappointed in the ruling,” Nashville Songwriters Association International’s (NSAI) Executive Director Bart Herbison shared on Wednesday. “Following ten years of Copyright Royalty Board (CRB) proceedings with the National Music Publishers Association (NMPA) where we won historic mechanical royalty rate increases, Spotify came up with a bundling scheme resulting in hundreds of millions in reduced payments to American songwriters. The Mechanical Licensing Collective (MLC) filed a lawsuit in response. This news is a gut punch.

“NSAI is considering our next steps in our ongoing fight for fair compensation. We hope that deals such as the one just announced between Universal Music Group and Spotify, and recent direct agreements between Amazon and music publishers, will be beneficial in future Copyright Royalty Board proceedings where the streaming mechanical royalty rates for songwriters are set.”

  • Author
  • Recent Posts
LB Cantrell
LB Cantrell
LB Cantrell is Editor/Director of Operations at MusicRow magazine, where she oversees, manages and executes all company operations. LB oversees all MusicRow-related content, including the publication’s six annual print issues and online news. She is a Georgia native and a graduate of the Recording Industry Management program at Middle Tennessee State University.
LB Cantrell
Latest posts by LB Cantrell (see all)
  • Big Machine Label Group Makes New Hires & Promotions - November 13, 2025
  • My Music Row Story: G Major Mgmt’s Virginia Bunetta - November 13, 2025
  • BMI Promotes Three On Nashville Creative Team - November 13, 2025
Share this entry
  • Share on Facebook
  • Share on X
  • Share on LinkedIn
  • Share by Mail
https://music-row-website-assets.s3.amazonaws.com/wp-content/uploads/2022/05/06232009/Gavel-istock-FB.jpg 461 878 LB Cantrell https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png LB Cantrell2025-01-29 15:19:572025-01-29 16:03:07Spotify Wins MLC Lawsuit Over Bundling Royalties

RECENT NEWS

  • Reba McEntire Celebrates 50th Anniversary Of First Record Deal With MCA Team November 13, 2025
  • Clay Walker Fulfills Bucket List Wish With Ryman Debut November 13, 2025
  • DISClaimer Single Reviews: Kelsea Ballerini Offers Sophistication & Elegance November 13, 2025
  • Save The Music’s ‘Hometown To Hometown’ Event Honors Old Dominion, Lee Ann Womack & Cameo Carlson November 13, 2025
  • Industry Ink: Jordan Davis, HARDY, Jenna Paulette, Emily Ann Roberts, Raise the Woof November 13, 2025
  • Anne Murray Celebrates The Season With Two Newly-Remastered Classics November 13, 2025
  • Big Machine Label Group Makes New Hires & Promotions November 13, 2025
  • Weston Loney Signs With Combustion Music & PunchBowl Entertainment November 13, 2025
  • My Music Row Story: G Major Mgmt’s Virginia Bunetta November 13, 2025
  • Jon Wayne Hatfield Inks With Big Machine Music And Red Creative Group November 13, 2025

Like Us on Facebook

Follow Us on Twitter

Tweets by MusicRow
© 2025 Music Row Enterprises, LLC - Enfold WordPress Theme by Kriesi
Website hosted by Nashville web design company, All My Web Needs.
  • Link to Facebook
  • Link to X
  • Link to Instagram
Scroll to top