Paul, Weiss, Rifkind, Wharton & Garrison has initiated a lawsuit against the globally renowned audio streaming platform, Spotify, on behalf of a nonprofit association, the Mechanical Licensing Collective. The attorneys argue that Spotify is not adhering to its obligations as per the Copyright Act.
The basis of the lawsuit involves Spotify’s introduction of its audiobook access product, and subsequently categorizing its $10.99 Premium subscription service as a “bundled” offering. The argument is that this manipulates the reported revenue, thereby decreasing the amount of money reported to the plaintiff nonprofit. The Mechanical Licensing Collective is tasked with the distribution of mechanical royalties from streaming services to songwriters and music producers, and this reduction could potentially impact a substantial portion of its generated income.
Further details about the lawsuit such as specifics about the alleged infringement, potential consequences for Spotify, and potential ramifications within the music industry can be found in the original article on NY Law Journal.