Spotify, the Swedish-based leading company when it comes to music streaming, is currently under heat after Wixen Music Publishing, giant firm that manages the titles of many big names in the music industry including artists and songwriters, decided to file a lawsuit against them. This is amidst the excitement after news broke that Spotify is coming to Thailand soon. The music streaming company may occupy a Retail & Office Space in Bangkok or the news might be a rumor after all. For now, they are focused on the lawsuit against them.
The lawsuit was filed last year on December 29 with allegations that Spotify is utilizing thousands of songs which they do not have the proper license to. Wixen wants injunctive relief along with damages amounting to around $1.6 billion.
According to Wixen, Spotify does not havethe direct or necessary license needed for the company to reproduce or distribute the music such as The Doors’ Light My Fire and Tom Petty’s Free Fallin’.
The lawsuit states that before the launch of Spotify in the United States they have signed agreements with major labels concerning copyrights in sound-recording but they did not receive the same rights when it comes to the compositions. Wixen added that because of the desire of Spotify to be the first in the market it has failed to gather the necessary information concerning musical composition.
It continues that because of that action, Spotify was able to make a business worth billions of dollars while making use of the music that has been made by publishers as well as songwriters. In majority of the cases, they failed to obtain and pay for the required licenses.
According to the music publishing, Spotify was also allegedly using a third party which is the Harry Fox Agency to outsource their work. Wixen is of the belief that Harry Fox Agency does not have the capacity to obtain the mechanical licenses needed by Spotify for their business.
Wixen is expecting $1.6 billion of settlement and not the $43 million they are offering the previous year. Spotify is currently revenues over $3 billion annually and is expected to have a new location at a Retail & Office Space in Bangkok in addition to its existing luxurious locations in different cities.