Spotify has been sued for $1.6 billion USD by Wixen Music Publishing for allegedly using thousands of songs without license and compensation. Wixen’s library of songs includes works from artists like Tom Petty, Weezer, Stevie Nicks and Neil Young.
In the California court-filed lawsuit, Wixen claims Spotify failed to obtain a direct or a compulsory license would allow for the reproduction and distribution of its songs. Further, Wixen alleges that Spotify outsourced its work to licensing and royalty services provider the Harry Fox Agency, which it says was “ill-equipped to obtain all the necessary mechanical licenses.”
Spotify declined to comment.
Last year, Spotify was also sued by a collective of artists — including Kenny Rogers, David Lowery and Melissa Ferrick — over accusations that it wasn’t paying proper mechanical licenses for song compositions. In response, the company proposed a $43 million settlement, although hundreds of artists said the compensation wasn’t enough.
Spotify also came under fire in 2017 for allegedly creating “fake artist” accounts to avoid paying significant royalties, although the company denied these claims.
Nonetheless, Spotify has recently filed to go public, following an approximate growth of 20 percent in value to at least $19 billion over the past few months.