@andreworlowski: Spotify just can’t wash those songwriters out of its hair, out of the way, I’ve got an IPO

Spotify is embroiled in new legal objections over how it pays songwriters royalties… or doesn’t, as the songwriters insist.

At issue is the mechanical copyright royalty – the amount owed to the composer or songwriter from the reproduction of the recording. Songwriters and composers argue that while Spotify negotiated licences with record companies, it didn’t bother asking the writers, and didn’t build the infrastructure internally to pay the writers.

Traditionally this was handed off by the record company to the music publisher. But in the streaming era, things have become messy and opaque. As much as 25 per cent of the royalties owed to composers may be missing, according to National Music Publishers’ Association (NMPA) president David Israelite.

To cut a long and complicated story short, earlier this year Spotify agreed to settle two class action suits as it cleared the decks for its IPO: an IPO songwriters say will make Spotify executives rich, while failing to pay the people whose work built the business – the people who write the songs. Fresh objections on two fronts this week suggest the deal is far from done.

 

Read the post on The Register

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s