Judge Grants The MLC To File Amended Complaint In Spotify Case

/by

Last week, a judge from the Federal District Court in New York granted The MLC’s request to file an amended complaint in their ongoing case against Spotify. The ruling also denied relief Spotify was seeking in their motion for reconsideration.

This ruling give The MLC the ongoing opportunity to challenge Spotify’s bundling practices that have reduced songwriter and publisher royalties. The case will continue to be litigated, with potential for major financial and industry-wide implications.

“The MLC welcomes this Order granting our motion to file an amended complaint and recognizing our right to seek recovery of underpaid royalties from Spotify.” The MLC stated in response. “This is an important case. We brought it to ensure streaming royalties are properly paid under the law. We look forward to further demonstrating the merit in our claims.”

The MLC’s goal is to ensure that streaming royalties are accurately calculated and paid according to the law, emphasizing the organization’s commitment to protecting creator’s rights.

The MLC’s case against Spotify was first filed last year. The action seeks recovery of unpaid royalties due under the compulsory mechanical blanket license obtained by Spotify to reproduce and distribute musical works in the United States via its consumer music streaming platform.

“We are extremely pleased that the case against Spotify by The MLC has new momentum,” shared the NMPA in a statement. “The judge today upheld The MLC’s ability to file a new complaint alleging Spotify improperly used the Audiobooks Access plan and that Spotify actually owes royalties on the Audiobooks Access plan because it comes with music. This means songwriters and publishers have reason to hope that Spotify’s deceptive practices will be stopped. You cannot unilaterally convert music subscribers to bundles including audiobooks – to pay a lower royalty rate – then raise prices and make it exceedingly difficult to return to a music-only plan.”

Madison Hahnen
Latest posts by Madison Hahnen (see all)