Two days ago, Spotify announced that they will be implementing a new way to pay royalties. Today, they’re getting sued by two rock bands as they claim that Spotify has not been paying royalties.
80s rock band Camper Van Beethoven and Cracker frontman David Lowery has filed a class action lawsuit against the music streaming service, alleging that it knowingly, willingly, and unlawfully reproduces and distributes copyrighted compositions without obtaining mechanical licenses. For that, they are seeking at least USD150 million in damages.
This lawsuit, filed on December 28th in the Central District Court of California, claims that Spotify has unlawfully distributed copyrighted music compositions to more than 75 million users, but failed to identify or locae the owners of those compositions for payment. Furthermore, the service did no issue a notice of intent to employ a compulsory license.
Songs that were alleged to have been illegally reproduced and/or distributed by Spotify include “Almond Grove”, “Get On Down the Road”, “King of Bakersfield”, and “Tonight I Cross the Border”.
Besides damages, the lawsuit requests that the court enjoin Spotify from continued copyright infringement; from further violations of California Business & Professions Code Section 17200; injunctive relief that requires Spotify to pay for the services of a third party auditor to identify the works reproduced and distributed by Spotify without first obtaining a mechanical license; and requires Spotify to remove all such works from its services until it obtains the proper licenses.
Source : Billboard