Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com -- Spotify Technology SA (NYSE:SPOT) has successfully had a lawsuit dismissed that alleged the company had manipulated its premium service in a way that shortchanged songwriters of their royalties.
The lawsuit was filed by the Mechanical Licensing Collective (MLC) in May. The MLC is responsible for collecting payments from streaming services on behalf of songwriters, composers, lyricists, and publishers.
The MLC took issue with Spotify’s addition of the term "bundled" to the description of its service. They claimed this change was used as a legal justification to reduce the revenue base for calculating royalties by nearly 50%.
The MLC is legally restricted from revealing the exact amount of the decline in royalties. However, they did reference a Billboard story that estimated the reduction could result in a loss of about $150 million in 2025.
US District Judge Analisa Torres dismissed the case on Wednesday. The details surrounding the dismissal have not been disclosed. This legal victory for Spotify means the company can continue its operations without the looming threat of this lawsuit.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.