Spotify hit with $150 million class action lawsuit
Musicians’ rights activist David Lowery takes on the streaming giant.
Lowery, the frontman of Cracker and Camper Van Beethoven, has filed a class action lawsuit seeking at least $150 million in damages against Spotify. The lawsuit, filed on December 28 in the Central District Court of California, alleges that the company knowingly, willingly and unlawfully reproduces and distributes copyrighted compositions without mechanical licenses.
The lawsuit claims that Spotify has “publicly” admitted its failure to obtain proper licenses for some music, creating “substantial harm and injury to the copyright holders, and [diminishing the integrity of the works.” Sources say that Spotify has a reserve fund, estimated at $17 to $25 million, to pay royalties for such pending and unmatched music.
Previously, reports surfaced claiming that Spotify has told music executives that it might allow some artists to release albums only to paid subscribers, temporarily withholding the music from free users. [via Billboard]