Artists Bring a Class Action Suit Against Spotify

The suit claims class-action status, meaning Lowery would represent other people in a similar situation and the court would make a decision that would apply to all of them. The lawsuit lists “Almond Grove”, “Get On Down the Road”, “King of Bakersfield” and “Tonight I Cross the Border” – songs that Lowery performed with Cracker – as illegally reproduced by Spotify for its users.

David Lowery, front man for the bands Camper Van Beethoven and Cracker, said in a federal legal complaint that Spotify, the market leader in streaming music, could be liable for up to $150 million in statutory damages for the collective instances of alleged infringement.

Lowery’s lawsuit only names Spotify and doesn’t include the major song publishers (Sony, for example, has an agreement with Spotify).

As digital music streaming, and especially companies that provide the service on a subscription basis, continue to be a hotly-contested issue among artists and industry insiders, one of the biggest players has been hit with yet another challenge.

The lawsuit, filed on December 28 in the Central District Court of California, alleges that the streaming company knowingly engages in unscrupulous business by distributing copyrighted works to its seventy-five million subscribers without proper licensing.

“We are committed to paying songwriters and publishers every penny”, Jonathan Prince, Spotify’s global head of communications said in a statement. Spotify recently announced they have paid $3 billion in royalties to date, but sources say the company has a fund of $17 million to $25 million on reserve to pay for outstanding royalty fees.

Spotify has frequently defended itself against charges from artists – notably Taylor Swift – that it pays back too little. In a blog post last week Spotify admitted that it had a problem managing royalties, and that it would work with the NMPA to build a “comprehensive publishing administration system” to ensure artists and publishers are properly compensated.

Spotify said that it had been setting aside royalty money for future payouts when it could not confirm the identities of rights-holders. First reported by Billboard, the suit seeks some $150 million damages for a proposed class expected to exceed 100 members.