Spotify has settled a $1.6 billion IP lawsuit alleging the music subscription streaming service failed to get physical clearances and properly compensate artists, among other issues.
New York-based Spotify, which reportedly has 75 million active subscribers and 170 million monthly users, and Wixen Music Publishing – whose clients include the late Tom Petty, Stevie Nicks and Rage Against the Machine – mutually agreed to dismiss the case after both sides came to an undisclosed business resolution.
In a joint statement, Wixen and Spotify said they agreed to a final dismissal of the lawsuit filed by Wixen in late 2017.
“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 relating to past licensing of Wixen’s catalog and establishes a mutually-advantageous relationship for the future,” said the companies.
The recently enacted Music Modernization Act signed by President Trump in October hopes to negate future similar litigation by streamlining the clearance process enabling artists to get compensated more quickly by digital music services.
Notably, the legislation also meant artists and songwriters would – for the first time – receive royalties from streaming services for content recorded and published before 1972.