Big Lawsuits Against Spotify

In December of 2015 and January 2016 Spotify was hit with back to back lawsuits concerning unpaid royalties to two artists. David Lowery and Melissa Ferrick both filed similar law suits on the company after they felt they weren’t being paid. Lowery sought for $150 million, Ferrick wanted $200 million for her losses. With a $350 million dollar law suit at their feet Spotify felt as if they needed to fire back. Spotify argued that in some cases “the data necessary to confirm the appropriate rights holders is often missing, wrong, or incomplete. When rights holders are not immediately clear, we set aside the royalties we owe until we are able to confirm their identities. We are working closely with the National Music Publishers Association [NMPA] to find the best way to correctly pay the royalties we have set aside and we are investing in the resources and technical expertise to build a comprehensive publishing administration system to solve this problem for good.”

Shortly after the suits were filed and Spotify made their defense statements a $30 million dollar deal was made with the NMPA to pay the royalties that were “set aside” for rights holders issues.

Source: http://www.billboard.com/articles/business/7385072/david-lowery-melissa-ferrick-spotofy-lawsuits-combined

Written by: Graham Garner

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2 thoughts on “Big Lawsuits Against Spotify

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  1. This post is so interesting! It goes along exactly with the theme of the interaction between Spotify and big data, and how that interaction can easily become muddled. It is shocking how much money is involved in these lawsuits and I wonder how much damage this caused to their business as a whole. This would be so important in our paper because it shows exactly how out of control the problems can get within a big business and how data is a direct catalyst for those problems.

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  2. Interesting post! Spotify needs to find ways to fix their data so artists are paid the correct amount. Lawsuits like this cost lots of money. It would be such a shame for Spotify to loss all of that money just because their data is not organized. This lawsuit shows the importance of big data regarding large companies like Spotify.

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