This is what happens when a tech company adopts a “seek forgiveness” licensing policy.
Spotify is now being threatened with another major lawsuit, this time from a totally different group of publishers.
The following is a developing story exclusive to Digital Music News. Please check back for ongoing updates.
Spotify is now being threatened with yet another major lawsuit, this time from a group of indie music publishers demanding unpaid mechanical royalties. According to sources either close to the situation or involved with one or more of the publishers, the collective of publishing companies is unhappy with a recent settlement agreement with Spotify structured by the National Music Publishers’ Association (NMPA), one viewed as overly-lenient and designed to accommodate the interests of only the largest publishing conglomerates.
The indie publishing group is also unwilling to join a songwriter-focused class action lawsuit against Spotify, first lodged last year and carrying potential damages of $200 million.
The collective of potential litigators currently comprises 4-5 publishing groups, according to information shared with DMN. That group could grow in size, though these midsize, indie publishers collectively control about 150,000 song copyrights. That’s enough to create a serious problem, and Spotify has already received litigation threats and letters, according to one source.
At this stage, nothing has been filed in court.