Music Publisher Sues Spotify for US$1.6 Billion

Saul Franklin
January 7, 2018

In May, Spotify paid $43.4 million to settle a class-action lawsuit filed by musicians Melissa Ferrick and David Lowery, who accused the digital music service of streaming their songs without a license.

Spotify confidentially filed paperwork for an initial public offering with the Securities and Exchange Commission, a person familiar with the matter said Wednesday.

The confidential filing was initially reported by news outlet Axios.

A direct listing mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO along with many associated fees and could change the way companies approach selling shares to the public.

Now available in 61 markets and expanding, Spotify offers 30 million songs and has over 2 billion playlists which form a unique algorithm that provides relevant music to all the paying users.

Spotify's Chief Content Officer, Stefan Blom, is leaving the streaming company in the coming weeks - amid the firm's attempt to list on the New York Stock Exchange. Some of these songs are owned by Wixen via copyright. The lawsuit, which has been filed in Federal Court in California will definitely send a message to these streaming companies that there is no free ride off the hard work of others.

Early morning Berkeley natural disaster downgraded to Magnitude 4.4
Fortunately, no damage or personal loss was reported despite it rattled the Bay area completely. - A 4.4 magnitude natural disaster shook the Bay Area early Thursday morning.

If you are wondering why Spotify would make such an obvious blunder, it seems that they made the mistake of outsourcing the licensing responsibilities to a third-party agency that was ill-equipped to take on the monumental task of getting all of the licenses in place.

Spotify has yet to comment on the issue.

The suit, which alleges that Spotify is using thousands of songs without a proper license, was filed on December 29 in California federal court.

Music licensing is notoriously complex, with each song having multiple rights holders who can be hard to identify and locate.

This was also not the first time Spotify has been involved in a multi-million dollar lawsuit and settlement case.

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