Spotify and Wixen Music Publishing have agreed to settle the publisher’s $1.6 billion lawsuit against the streaming platform out of court.
Late last year, Wixen had alleged that of the 30 million songs Spotify hosted from its catalogue, none were covered under a mechanical license while songwriters’ royalties were not paid on 21 percent of them. The company represents Rivers Cuomo, Stevie Nicks, Tom Petty and others. It sought damages of $150,000 per song.
The thing was, Wixen had wanted to achieve a settlement from the start and didn’t necessarily support legislation to reform digital streaming royalties — the Music Modernization Act was signed into law in October. That said, it had also rejected a $43 million proposal from Spotify.
Terms of the deal were not disclosed, but TechCrunch reports that Spotify did not file papers with the Securities and Exchange Commission on a payout, indicating that it didn’t pay the full $1.6 billion.
Since going public, Spotify has acquired licensing company Loudr and has given publishers more tools to insert credits for songwriters and other contributors to songs. It launched a streaming analytics dashboard for artists last month.