Published: Sun, January 07, 2018
Hi-Tech | By Cory Rios

Wixen's $1.6 Billion Spotify Lawsuit: Here Are the Details

Wixen's $1.6 Billion Spotify Lawsuit: Here Are the Details

And in March 2016, Spotify announced 30 million paying members, taking six months to hit its milestone in September, for a 33 percent rise.

Music streaming service Spotify has filed confidentially with USA regulators for an initial public offering and is targeting a direct listing in the first half of 2018 that would allow some longtime investors to cash out, a source familiar with the matter said on Wednesday.

But now it needs to deal with Wixen's lawsuit.

The suit was filed last Friday in the state of California, United States.

Under the Copyright Act, there are two separate copyrights to every recorded song: one for the sound recording (this revenue typically goes to the record label) and one for the musical composition (this revenue typically goes to the publisher and songwriter).

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Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was "ill-equipped to obtain all the necessary mechanical licenses". Other musicians signed under Wixen include Missy Elliot, Janis Joplin, and The Beach Boys. Wixen's claim basically stated that Spotify did not have all the correct licenses to stream certain songs.

Music streaming company Spotify was sued by Wixen Music Publishing Inc last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and the Doors, without a license and compensation to the music publisher.

A rep for Spotify declined Variety's request for comment.

The lawsuit is unlikely to have a major impact on Spotify's IPO, said Luke DeMarte, a copyright lawyer at Michael Best & Friedrich not involved. They already have a $43 million settlement which was proposed back in May.

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