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Spotify has successfully defeated a lawsuit filed by the Mechanical Licensing Collective (MLC) that accused the streaming service of illegally reducing royalty rates through its audiobooks and music bundling option. A federal judge in New York, Analisa Torres, ruled that the federal royalty rate rules clearly permit Spotify to claim lower rates, thereby dismissing the MLC's claims that the company was not genuinely offering a bundled service. This legal victory allows Spotify to continue its bundling strategy without facing penalties for alleged underpayment of royalties.
Spotify convinced a New York federal judge to dismiss a lawsuit that accused the streaming service of underpaying songwriting royalties for tens of millions of songs https://t.co/du8TmePZCY @blakebrittain https://t.co/lMKqisP10g
"...in her decision on Wednesday, Judge Analisa Torres said that federal royalty rate rules clearly allowed Spotify to legally claim the lower rate, rejecting MLC’s argument that the company was not actually offering a “bundle” of services." https://t.co/tDEg8aMDH7
Spotify has defeated a lawsuit from the Mechanical Licensing Collective that accused the streaming giant of unfairly cutting royalty rates as part of its audiobooks-music “bundling” option announced last year. https://t.co/YwI21mwjaF