Spotify and Wixen settle $1.6 billion lawsuit

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.

Share This Post

Watch the Latest Pocketnow Videos

About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.