Spotify's rapid ascendance has a price: A $1.6 billion lawsuit for failing to pay some artists for their songs.
The korean adult movie | Adult Movies Onlinemusic publisher Wixen, which represents artists like Neil Young, the Black Keys' Dan Auerbach, and Tom Petty, has sued Spotify to the tune of $150,000 per song. Wixen says Spotify failed to get the necessary licenses to play over ten thousand songs.
The lawsuit underscores that while Spotify has grown quickly, it still faces issues with how it compensates artists and songwriters due to complex questions around music rights. Spotify will need to adapt to address that issue ahead of its debut as a public company — and as it looks to turn a profit for the first time.
The Hollywood Reporterfirst spotted the lawsuit, which Wixen Music Publishing filed last week in California. Wixen specifically cited that Spotify, "in a race to be first to market, made insufficient efforts to collect the required musical composition information" and "built a billion dollar business on the backs of songwriter and publishers."
The lawsuit suggests that a whopping six million songs could lack the necessary licenses, although Wixen has dominion over just a portion of these songs.
SEE ALSO: Want to make music on Spotify? A new acquisition could make it possible."Music licensing for the kind of streaming that Spotify does is inherently complicated and imperfect," said Larry Miller, the director of New York University's music business program, in an email.
Every song, like Neil Young's "Heart of Gold," is copyrighted in two ways. The actual sound recording is owned by the record label that produced the song. Then, there's the ownership of the song's actual composition (technically called "mechanical licensing") -- in which the all the song's writers must be paid. Take, for instance, The Rolling Stones' "Start Me Up," which was co-written by Mick Jagger and Keith Richards.
The problem -- and this lawsuit -- lies in the second copyright, the crediting of a song's composers.
"Licensing musical compositions is far trickier, and from Spotify's perspective, far riskier," said Miller.
It's trickier because for each song Spotify must know all the co-writers "of literally every song Spotify wants to play," explained Miller (Spotify says it offers over 30 million songs). And accordingly, there's great risk for infringing upon the rights of songwriter they've excluded or didn't know about -- as the $1.6 billion lawsuit shows.
"Music licensing for the kind of streaming that Spotify does is inherently complicated and imperfect."
But Spotify simply doesn't have an efficient way to know who was responsible for writing every song on every album. A single song can have three or more songwriters. Or an artist could cover a song -- meaning Spotify would need to pay the actual songwriters for the streamed song -- not just the artist who recorded it.
"There’s an information problem here," said Robert Weitzner, an assistant teaching professor at Drexel University's Music Industry Program.
Weitzner refers to this informations as "metadata," which incorporates all the background information about the song. This includes all the songwriters and how much songwriting credit, or split, each songwriter is entitled too.
"There's incomplete metadata that’s delivered to streamers," he said, noting that record labels (who own the sound recording) often don't provide this information to streaming companies.
This leaves the burden on sleuthing out all the songwriters on streamers like Spotify, which might not wait to tediously compile this information in a competitive music market.
"There's a race to market," said Weitzner.
But there's also a solution: Adapting to the way most people listen to music today (six out of every 10 dollars in recorded music revenue go to streamers) and developing a system to make this songwriting information more easily available. Such a weighty lawsuit -- while perhaps not ideal -- could move the needle.
"The information around the songs -- who wrote it, who recorded it -- needs to be readily available to people," said Weitzner. "That’s what's going to happen. What we’re seeing through these lawsuits is this system working its way through that."
This certainly isn't Spotify's first lawsuit on the matter. In May, the streaming giant agreed to pay $43 million to artists that had filed a class-action lawsuit for not properly licensing songs. Wixen, however, did not agree to this settlement -- which is still pending approval by a judge.
SEE ALSO: Apple is buying ShazamEven without these licensing disagreements, adequately compensating musicians for streamed songs is still complicated. The basic formula involves dividing an artist's streamed songs (relatively tiny) by the total number of streamed songs -- which is a huge number (in the billions). This tiny percentage is then taken from Spotify's total revenue for subscriptions and advertisements, which is then paid to record companies. Companies then give a small percentage to publishers like Wixen, which then pays songwriters.
"So you might understand why songwriters and publishers feel marginalized under the current licensing regime for streaming," Miller said.
Still, Weitzner believes it's important for Spotify to adapt and solve its recurrent copyright struggles. Spotify, he notes, is a stand-alone company (not part of the likes of Google or Apple) generating billions dollars (though is not quite yet profitable) -- something that the long-struggling music industry can continue to thrive on.
"We have got to sort this out now," said Weitzner. "It’s important to see Spotify survive. It’s important for the industry to see Spotify successfully navigate this transformative period."
Topics Music
Previous:The Same F’ing Song
Next:Mind Out of Time
Donald Trump Jr. tried to come for Jimmy Kimmel this weekend—and it didn't work out too wellThe BlackBerry Motion has no physical keyboard and its battery life is enormousThe BlackBerry Motion has no physical keyboard and its battery life is enormousIn the wake of the Equifax hack, consumers have a new take on their online security: ¯\A letter from the front lines of the 'Rick and Morty' McDonald's sauce warRick and Morty fans and McDonald's prove we can't have nice things'Rick and Morty' coGoogle got permission to float its internetCostco will finally deliver all those giant bulk items with its new grocery serviceWhy teenage boys don't want to call themselves feministsThe BlackBerry Motion has no physical keyboard and its battery life is enormousSkies around Disneyland turn orange as Anaheim Hills fire ragesWhy understanding the political influence of social media extends beyond Russia'Outlander' episode 5 finally gives us the reunion we want: recapA letter from the front lines of the 'Rick and Morty' McDonald's sauce warNintendo fans bid farewell to the Miiverse in hilarious and touching waysa vry sad eulogy 4 aim by meHow to hold private companies accountable for data breachesIn the wake of the Equifax hack, consumers have a new take on their online security: ¯\AOL Instant Messenger is being laid to rest and the internet is mourning very loudly Finnish brewery made 1,000 Gorgeous Galaxy Note 8 concept lets you have your cake and eat it too Snap may finally have a good answer to the Facebook question Stephen Colbert to reunite the 'Best f*ckin news team ever' on 'The Late Show' Xiaomi to open first Mi Home store in India next week Australian Twitter communities are more diverse than you might think Research note suggests Apple could announce iPhone 8 at WWDC All 2,500 of this shelter's animals were adopted The Defenders trailer is full of clues for Netflix's new Marvel show Teen who took her Harvard acceptance letter to prom deserves a crown World's smallest 4G phone has 3 A woman filmed her driver's obscene harassment, but she ended up in jail Facebook is so, so close to 2 billion users Any app with human interaction needs a block button, period This guy paid an expired meter and left a perfect note for the motorist Game of Thrones' Jaime Lannister is a good person, really. Fyre Fest gets burned with another class action lawsuit because of course it did Whatsapp is down, and the internet is freaking out UberEATS starts serving in India, its fourth Asian market Powerful gene
0.9933s , 10130.796875 kb
Copyright © 2025 Powered by 【korean adult movie | Adult Movies Online】,Pursuit Information Network