Friday 21 December 2018 4:48 pm

Spotify settles $1.6bn lawsuit with independent publisher over songwriters’ rights

Music streaming service Spotify has settled a lawsuit with Wixen Music Publishing, which had sought damages of $1.6bn (£1.3bn) regarding the hosting of thousands of songs without a sufficient copyright licence.

Wixen accused Spotify of infringing the rights of songwriters and publishers on over 10,000 of its songs and underpaying them, while handing “outrageous annual salaries to its executives”.

Some of the publisher's copyrighted content includes songs from the likes of Tom Petty, Neil Young and the Black Keys. 

The companies announced on Friday that the lawsuit had been settled outside of court but the intricacies of the deal and fee remains undisclosed. 

Wixen claimed that Spotify had failed to address the rights of both songwriters and publishers, who have different claims to the compositions. 

As part of the deal that has been struck, the pair will be working more closely together in the future according to a joint-statement.

"Wixen Music Publishing and Spotify USA have agreed to a final dismissal of the lawsuit filed by Wixen Music Publishing late last year," the two companies said in a statement.

"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."