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 Copyright 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
IPTV supplier fined £18,000
14 February 2018 | Harrow | Reporter: Barney Dixon
A pre-loaded IPTV box supplier must pay a £18,000 fine for selling illicit streaming devices online, as well as breaching the Premier League’s copyright
IFPI calls for “effective solution” to value gap
07 February 2018 | Brussels | Reporter: Barney Dixon
The International Federation of the Phonographic Industry (IFPI), with the support of 23 other creative industry organisations, has penned a letter to the new presidency of the European Council asking it provide an “effective solution” to the so-
New trial ordered in BMG v Cox
06 February 2018 | Virginia | Reporter: Barney Dixon
The US Court of Appeals for the Fourth Circuit has overturned a $25 million damages award for BMG Rights Management and ordered a new trial in its dispute with Cox Communications
CRB issues royalty rate hike for music streaming services
05 February 2018 | Washington DC | Reporter: Barney Dixon
The Copyright Royalty Board has ruled to increase royalty payments to songwriters and music publishers from music streaming services by nearly 44 percent
Grumpy Cat wins copyright lawsuit
25 January 2018 | California | Reporter: Barney Dixon
The owner of internet sensation ‘Grumpy Cat’ has won a copyright infringement lawsuit against Grenade Beverage
Radiohead sue Lana Del Rey for copyright infringement
8 January 2018 | New York | Reporter: Barney Dixon
Radiohead are suing Lana Del Rey for copyright infringement, claiming that the Del Rey’s 2017 song Get Free was similar to their 1992 song Creep
Glosfer and Gemmy to create blockchain copyright protection platform
4 January 2018 | Seoul | Reporter: Barney Dixon
Blockchain firm Glosfer has signed a memorandum of understanding with copyright protection company Gemmy to create a blockchain-based copyright protection platform