Spotify is currently facing a new lawsuit that accuses the streaming giant of cheating songwriters out of royalties. This lawsuit, filed by several songwriters, alleges that Spotify has not been adequately paying mechanical royalties, which are fees owed to songwriters for the reproduction of their work. The issue has been complicated by Spotify’s argument that streaming music does not constitute a reproduction in the same way physical media does, thus challenging the requirement to pay these royalties.
This legal challenge adds to Spotify’s ongoing disputes over royalty payments. Recently, the company agreed to a $112.5 million settlement in a previous class-action lawsuit but continues to face criticism and additional legal action from other music publishers and songwriters who argue that these settlements are insufficient