Just days after a Twitter thread made headlines for its opposing views as to whether or not the music streaming service Spotify pays appropriate royalties, a lawsuit has been filed, seeking $1.6 billion from the streaming giant.
As Variety reports, Wixen Music Publishing, who handles the music from artists such as Neil Young, Tom Petty, The Black Keys Stevie Nicks, Rage Against The Machine, and Rivers Cuomo of Weezer, has filed a lawsuit against Spotify, claiming they have been using thousands of songs without a proper license, and have been handing “outrageous annual salaries to its executives”.
While Spotify has been hit with complaints and threats of legal action for years now, the company was involved in a class-action suit from a group of songwriters back in May. Spotify proposed a $43m settlement at the time, but that amount was subsequently criticised for being inadequate.
The lawsuit, filed on Friday, December 29th by Wixen Music Publishing, claims that the $43m settlement “does not adequately compensate Wixen or the songwriters it represents.”
“Prior to launching in the United States, Spotify attempted to license sound recordings by working with record labels but, in a race to be first to market, made insufficient efforts to collect the required musical composition information and, in turn, failed in many cases to license the compositions embodied within each recording or comply with the requirements of Section 115 of the Copyright Act,” the suit alleges.