Spotify Hits Wall With Artists Over $43 Million Licensing Settlement

Tom Petty, Kim Gordon, Dan Auerbach and More Reject Copyright Agreement

After Spotify proposed a $43 million deal back in May to resolve copyright issues over various licensing claims, an assortment of artists including Tom Petty, Sonic Youth’s Kim Gordon, Weezer frontman Rivers Cuomo, The Black Keys’ Dan Auerbach and Kenny Rogers appeared in court to contest the proposal by the Swedish streaming giant.

In statement submitted to the court, the group claims that the settlement is ‘procedurally and substantively unfair,’ adding that after attorney fees, the $43 million settlement will be reduced to $28.7 million.

 

The group also claims that Spotify will make no changes to their practices if the settlement goes through, stating that, “While a discount of some amount is to be reasonably expected as part of a compromise settlement, the discount potentially afforded Spotify in this case is a 98.7% discount for nonwillful infringement and a discount for willful infringement so close to 100% as to give Spotify a practical free pass on willful infringement.”

 

In their defence, Spotify claims that streaming does not account for reproduction or distribution rights under copyright law. If the court does approve the $43 million settlement offer, the musicians contesting the settlement are still able to file their own personal lawsuits.

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