Spotify’s Court Win Exposes Gap in Streaming Royalty Debate

Spotify USA Inc.’s victory over claims it contrived the premium subscription plan to reduce songwriter royalties creates a blueprint for other streaming services and leaves publishers scrambling for recourse to preempt further revenue loss.

The non-profit royalty clearinghouse Mechanical Licensing Collective failed to show Spotify’s new “bundled” Premium plan, which offers music and audiobooks, violated the Copyright Act and its implementing regulations, Judge Analisa Torres ruled in a Jan. 29 opinion. The ruling, in the US District Court for the Southern District of New York, opens the door for providers like Apple Inc. and Amazon.com Inc. to mimic Spotify’s ...