Royalty Collective to Seek Early Appeal in Spotify Bundling Suit

Royalty clearinghouse Mechanical Licensing Collective told a judge it wants the Second Circuit to review a ruling that tossed out its case against Spotify USA Inc.

The appellate court needs to step in, the MLC said, because its argument that Spotify unfairly created a bundled service to reduce what it owes the MLC in royalties presents a “novel question of regulatory interpretation.” It filed a pre-motion letter Monday notifying the US District Court for the Southern District of New York it will file a motion seeking interlocutory appeal.

The MLC—established seven years ago to issue a blanket license to streaming ...