Spotify came out on the losing end of a class-action copyright lawsuit it has been dragged through for the past three years, when on Tuesday (May 22) a federal judge approved the $112 million agreement reached between the streaming giant and the claimants involved in the case.
In two separate filings, musicians David Lowery and Melissa Ferrick both took Spotify to court for failure to pay them for the licensing of their content back in 2015. They'd eventually consolidate the suits and invite a multitude of other artists who had infringement related grievances. When talks of a settlement initially got off the ground in 2017 there were reports of a $43 million offer being made. In continuing forward with their fight, the class members were able to eventually secure $43.55 million as an immediate cash payment.
In addition to the automatic payout, Spotify will reportedly commit to honoring ongoing royalties to those determined to have been denied proper compensation. “The combination of the immediate and future monetary relief, along with the non-monetary benefits provided, constitutes a significant recovery,” US District Court Judge Alison Nathan wrote in regards to the decision.
Not everyone agrees that the amount is fair though, with Wixen Publishing Group, for example, stating that Spotify got away with a "practical free pass on willful infringement." Wixen - which represents Tom Petty, Tom Morello, and other famed artists - estimates that Spotify was essentially given a “98.7 percent discount” on the music it benefited off of, considering penalties for each work of infringement naturally range from between $30,000 and $150,000 each.
Source: gizmodo.com
