January 07, 2018:
Music streaming platform Spotify and music publishing company Wixen have finally settled on the lawsuit which was brought against Spotify last December by Wixen Music Publishing.
Wixen who represents artists like Tom Petty, Neil Young and many more claimed that the music streaming company was streaming tens of thousands of songs without proper licensing or compensation, and they were seeking damages up to $1.6 billion.
According to Wixen, Spotify was streaming songs of artists on their platform illegally as Spotify had not sent physical letters to songwriters to obtain “a direct or compulsory mechanical license” for use on the platform.
In addition to this, the complaint also stated that Spotify was engaging in copyright infringement by neglecting to send the proper notifications. As compensation, $150,000 was demanded per song which ultimately landed on the figure of $1.6 billion.
Earlier this year, a judge granted an extension to respond to the filing. The deadline date was set as December 21st to respond. But according to an announcement made on 20th December, the lawsuit was dismissed, Spotify reportedly settled the lawsuit and will pay Wixen an undisclosed sum of money.
Wixen and Spotify announced the dissolution of the lawsuit in a statement –
“Wixen Music Publishing, Inc. and Spotify USA Inc. have agreed to a final dismissal of the lawsuit filed by Wixen Music Publishing late last year. The conclusion of that litigation is a part of a broader business partnership between the parties, which fairly and reasonably resolves the legal claims asserted by Wixen Music Publishing relating to past licensing of Wixen’s catalog and establishes a mutually-advantageous relationship for the future”.