California
05 June 2017
Reporter: Mark Dugdale

Spotify settles class-action claims


Spotify has pledged to set up a $43.4 million fund to compensate musicians and artists whose work the music streaming service used without paying royalties.

The fund will settle class-action suits brought by musician David Lowery and singer/songwriter Melissa Ferrick in December 2015, which claimed Spotify willfully infringed the copyright of thousands of musicians.

Those suits, which were later combined, were filed in the US District Court for the Central District of California. The court still needs to approve the settlement before it can go ahead.

Under the settlement, Spotify will use the $43.4 million fund to compensate musicians and artists whose work the music streaming service has used without paying royalties.

Music industry sources estimate that Spotify paid record companies $20 per user in 2015, but recordings uploaded to its system without the proper metadata leave many musicians and artists unpaid.

Some 112 million users of paid music streaming subscriptions drove year-on-year revenue growth of 60.4 percent in 2016, according to IFPI, also known as the International Federation of the Phonographic Industry, with Spotify and Apple Music leading the way in compensating artists for their music.

Those 112 million users generated $3.9 billion in revenue last year, making digital income responsible for half of the global recorded music industry’s annual revenue for the first time.

More news
The latest news from IPPro The Internet
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Quarles & Brady hires internet of things expert
12 December 2017 | Milwaukee | Reporter: Barney Dixon
Quarles & Brady has hired Linda Emery as partner in its intellectual property practice group based in Milwaukee
Siemens reclaims infringing domains
11 December 2017 | Geneva | Reporter: Barney Dixon
Siemens has been transferred seven infringing domain names following a World Intellectual Property Organisation Arbitration and Mediation Centre dispute
PSNI, HMRC and FACT seize 50 illegal streaming devices
08 December 2017 | Belfast | Reporter: Barney Dixon
A joint operation between UK enforcement bodies has resulted in the seizure of 50 illegal streaming devices
China world’s top trademark filer in 2016
07 December 2017 | Geneva | Reporter: Barney Dixon
China was the world’s top trademark filer in 2016, with the country accounting for 3.7 million applications out of an estimated global total of 7 million
Marlboro beats infringer in UDRP dispute
07 December 2017 | Geneva | Reporter: Barney Dixon
Marlboro has acquired seven infringing domain names in a dispute at the World Intellectual Property Organisation Arbitration and Mediation Centre.
Squire Patton Boggs hires ex Walgreens Boots Alliance counsel
06 December 2017 | London | Reporter: Barney Dixon
Squire Patton Boggs has appointed Kerry Lee as partner in its intellectual property and technology practice
Google wins UDRP dispute
06 December 2017 | Minneapolis | Reporter: Barney Dixon
Google has won a domain dispute at the Alternative Dispute Resolution Forum