Spotify faces $1.6bn copyright lawsuit

Spotify has grown around 20pc in value to at least $19bn in the past few months
Credit
CHRISTIAN HARTMANN

Spotify has grown around 20pc in value to at least $19bn in the past few months Credit CHRISTIAN HARTMANN

Spotify is currently still working out the last legs of its ongoing class action lawsuit, but now they're set to juggle another from Wixen Music Publishing. Wixen handles copyright management and royalty compliance for artists including Tom Petty, The Doors, Neil Young and Missy Elliot. Spotify has maintained it wants to properly compensate for the music it streams, but has not always been able to find the data to identify rights holders.

The company is the most successful in the music streaming business, with over 60m paying subscribers.

Axios previously reported some details, citing unnamed sources, including that Spotify filed IPO documents in December for a public offering, citing unnamed sources.

Spotify is valued at approximately $15 billion, and would therefore be the largest company to attempt a direct listing, and the first to do so on the New York Stock Exchange.

The "direct listing" means Spotify will enter the markets without the need for a lengthy roadshow process or high banker fees.

Spotify declined to comment when approached about the report. They alleged that Spotify had failed to adequately pay royalties for some songs on their service. "Wixen notified Spotify that it had neither obtained a direct or compulsory mechanical license for the use of the Works".

Spotify has been embroiled in copyright issues in the past: in May of a year ago, the company came to a proposed $43-million settlement to resolve a class action copyright lawsuit filed by multiple songwriters.

North Dakota State earns football, financial respect
Jerry Van Dyke Dead at 86