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Spotify draws $1.6B copyright infringement suit

Spotify draws $1.6B copyright infringement suit

In 2017, an investigation found that Spotify and some of its users were using fake artist profiles to generate streams based on popular content, generating revenue for the service and fake profiles that wouldn't have to be paid in royalties to the actual artists.

A new report from Variety today shares that Spotify has been hit with a $1.6 billion lawsuit from the music publisher that represents Tom Petty, Neil Young, Weezer's Rivers Cuomo and more.

In the complaint, Wixen alleges that Spotify is guilty of streaming 10,874 songs they administer without proper licensing or compensation and is seeking $150,000 per song to bring the total award up to $1.6 billion.

The lawsuit said that Spotify initially tried to work with record labels but, "in a race to be first to market, made insufficient efforts to collect the required musical composition information". Wixen's lawsuit paints the problem as systematic, claiming that as much as 21 percent of the music streaming on Spotify is unlicensed.

Randall Wixen, the company's president, added, "We're just asking to be treated fairly".

At the time, they argued: "The Settlement Agreement is procedurally and substantively unfair to Settlement Class Members because it prevents meaningful participation by rights holders and offers them an unfair dollar amount in light of Spotify's ongoing, willful copyright infringement of their works".

Spotify had no comment on the lawsuit for TheWrap. "Upon information and belief, Spotify knew that HFA did not possess the infrastructure to obtain the required mechanical licenses and Spotify knew it lacked these licenses".

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