Music streaming company Spotify was sued by Wixen Music Publishing last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and the Doors, without a license and compensation to the music publisher.
Wixen, an exclusive licensee of songs such as “Free Fallin” by Tom Petty, “Light My Fire” by the Doors, (Girl We Got a) Good Thing by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $1.6 billion along with injunctive relief.
Spotify failed to get a direct or a compulsory license from Wixen that would allow it to reproduce and distribute the songs, Wixen said in the lawsuit, filed in a California federal court.
Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was “ill-equipped to obtain all the necessary mechanical licenses”.
Spotify declined to comment.
In May, the Stockholm, Sweden-based company agreed to pay more than $43 million to settle a proposed class action alleging it failed to pay royalties for some of the songs it makes available to users.
Spotify, which is planning a stock market listing this year, has grown around 20 per cent in value to at least $19 billion in the past few months.
The service will compete with similar offerings from Spotify and Apple
The company will not be able to make any major changes to the music app until it secures regulatory approval
They could pay about $400 million for acquisition and the deal could be signed as early as next week
More in Technology