$1.6 Billion Lawsuit
Wixen had filed a $1.6 billion lawsuit, back in 2017. The lawsuit which Wixen brought against the streaming service, accused the streaming service of using songs from the artists it represented. There are many artists such as Tom Petty and Rage Against the Machine. And it is all illegal as Spotify did not send physical letters to the songwriters. As to acquire “a direct or compulsory mechanical license” for use on the platform.
Furthermore, there was another complaint against Spotify. It was that Spotify was engaging in copyright violation. It is because they were neglecting to send the paper notifications.
Wixen also claimed that Spotify was failing to pay out songwriters royalties about 21 percent of the time. As compensation, it was asked $150,000 in statutory damages per song. And coming to the conclusion, this how the company arrived a the $1.6 billion lawsuit.
Wixen and Spotify announced the settlement of the lawsuit with the following 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.”
The two companies were working towards a solution for a very long time. And the step to settle the issue is exemplary.