Spotify facing $150 million lawsuit
Spotify is facing a $150 million lawsuit over distributing music without obtaining proper licensing. Cracker's former frontman is spearheading the lawsuit.
Spotify is in hot water again, but this time it may cost the streaming service more than some of its library of songs.
A class-action lawsuit has been filed against Spotify seeking more than $150 million in damages. The lawsuit is headed up by David Lowery, frontman of the band Cracker, who is joined by more than 100 other artists who claim that Spotify knowingly plays copyrighted music without proper licensing.
According to Billboard's report, this failure to obtain permission to play copyrighted material "creates substantial harm and injury to the copyright holders, and diminishes the integrity of the works."
Spotify is also in talks with the National Music Publishers Association after a similar dispute over licensing issues.
The music streaming service has also had issues with the payment of compensation. In an official statement, it revealed that "when it comes to publishing and songwriting royalties [...] that's easier said than done because the data necessary to confirm the appropriate rightsholder is often missing, wrong, or incomplete."
Spotify has paid out more than $3 billion in royalties to date, including $300 million in the first quarter of this year alone.