Umair
Spotify has come out on top in a lawsuit that claimed its bundling deals hurt artist pay.
The case was all about how Spotify combines its music service with things like audiobooks, which some artists such bundles meant that they are getting paid less.
This came right after the giant streaming platform added a new audiobooks bundle to its premium subscription last year, which left artist scratching their heads in worry.
Spotify started paying songwriters less money, but they said that it’s because of a deal made in 2022 with music publishers. However, this deal was approved by the Copyright Royalty Board.
The Mechanical Licensing Collective, nonprofit that handles mechanical licenses for streaming services, sued Spotify last May. The lawsuit alleged that Spotify wrongly redefined the bundle and cut the rate by up to 50% without giving any kind of warning.
On January 29, the judge verdict that Spotify was right, stating that the bundling rule was clear and straightforward.
Judge Analisa Torres said: “The only plausible application of the law supports Spotify’s position. Under the facts as alleged, audiobook streaming is a product or service that is distinct from music streaming and has more than token value.”
“Premium is, therefore, properly categorised as a bundle, and the allegations of the complaint do not plausibly suggest otherwise,” she added.
Spotify has been facing lots of criticism, especially after hosting a brunch the day before Donald Trump’s inauguration and donating $150,000 (£122,000) to the event.
