Business

Songwriters Association Files FTC Complaint Against Spotify Over Royalties

The National Music Publishers’ Association, a trade group that represents music publishers and songwriters, filed a complaint with the U.S. Federal Trade Commission on Wednesday about Spotify Technology SA’s decision to provide audiobooks to subscribers, which resulted in reduced royalty payments to songwriters.

The audiobooks addition gave Spotify leeway to reclassify its premium subscription offering as a “bundle.” Under a complicated system set by the U.S. Copyright Royalty Board, that qualifies Spotify to pay a discounted rate to songwriters since it’s now paying for the licensing of books and music under the same subscription price.

The NMPA alleges in its complaint that the bundle is unlawful since subscribers were automatically rolled in, with no option to remain on a music-only tier, which doesn’t yet exist in the U.S. Payments to songwriters could drop by around $150 million over the next year as a result, according to the NMPA.

“This bait-and-switch subscription scheme is ‘saddling’ shoppers with recurring payments for products and services they did not intend to purchase or did not want to continue to purchase,”  the NMPA said in a letter to FTC Chair Lina Khan. “If allowed to continue, Spotify’s conduct will cost consumers millions of dollars, undermine the music royalty system, and harm competition.”

The NMPA also sent its complaint to 10 state attorneys general, including those in New York, Tennessee, California and Illinois, as well as several consumer advocacy groups, in an attempt to encourage state investigations and possibly class action lawsuits.

A spokesperson said Spotify’s approach to offerings and prices is standard in the industry. “We notify users a month in advance of any price increases and offer easy cancellations as well as multiple plans for users to consider,” the spokesperson said. “In short, we categorically reject the NMPA’s baseless accusations.” 

Spotify’s bundling move has put it at war with music publishers. The Mechanical Licensing Collective, a royalty collection service, sued the streaming service over the issue last month. The group is asking a federal court in Manhattan to order Spotify to stop classifying premium subscriptions as a bundled service and to pay for lost revenue.

In response to the lawsuit, Spotify said it looks forward to a “swift resolution,” over terms that publishers and streaming services “agreed to and celebrated years ago.”

Separately, the NMPA also sent a cease-and-desist letter last month over products it claims are infringing on songwriters’ copyrights. The NMPA alleges music videos, lyrics and podcasts on the platform use copyrighted music without the proper permissions.

“Before Spotify’s ‘bundling’ betrayal, we may have been able to work together to fix this problem, but they have chosen the hard road by coming after songwriters once again,” David Israelite, chief executive officer of the NMPA, said in a statement at the time.

A Spotify spokesperson called the May letter a “press stunt filled with false and misleading claims.”

Related Posts

Centre County’s Mini-Casino to Proceed After Supreme Court Ruling

After nearly four years embroiled in legal and bureaucratic complexities, the planned mini-casino at Centre County’s Nittany Mall in Pennsylvania has finally received the green light for construction….

DC Council Approves Comprehensive Changes to Sports Betting Regulations

The Washington DC Council has unanimously approved the final reading of the budget bill, which incorporates pivotal changes for mobile sports betting in the District. This decision, reached…

Florida legislators sign off on new tribal gaming compact

In the southern American state of Florida and local lawmakers have reportedly overwhelmingly approved proposed legislation that would legalize land-based sportsbetting and authorize the building of up to…

Penn Entertainment Acquires Sports Betting License for ESPN Bet Launch in New York

Casino corporation Penn Entertainment has bought a betting license to launch its vertical ESPN Bet to the largest legal sports betting market in the United States. The state…

Nintendo Switch เปิดให้เล่น ‘มาริโอ้แลนด์ – เจ้าชายกบ’ แล้ว_1

เป็นอีกหนึ่งสิทธิ์การเล่นเกมที่หลายคนชื่นชอบไม่น้อยสำหรับ Nintendo Switch Online หรือ NSO ที่ผู้เล่นสามารถรับเกมเรโทรฟรีได้เลยในฐานะหนึ่งในบริการเสริม โดยล่าสุดก็ถึงคิวที่จะนำเกมคลาสสิกอย่าง Super Mario Land, Baseball และ Alleyway เช่นเดียวกับอีกหนึ่งเกมโบนัสของโซนญี่ปุ่น The Frog For Whom the Bell Tolls หรือที่หลายคนรู้จักในชื่อ ‘เจ้าชายกบ’ ว่าแล้วมาทำความรู้จักกับแต่ละเกมเลย เกมฟรีสำหรับผู้ใช้ NSO ทุกคนคำพูดจาก…

ผู้กำกับ NIKKE แอบสนใจที่จะนำเกมไปดัดแปลงเป็นอนิเมะ

ต้องบอกว่าเกม GODDESS OF VICTORY: NIKKE เป็นอีกหนึ่งเกมที่มีเนื้อเรื่องที่น่าติดตามอย่างมาก อีกทั้งตัวละครภายในเกมถูกวาดออกมาเป็นภาพสไตล์อนิเมะ ทำให้มีแฟนเกมหลาย ๆ คนตั้งความหวังไว้ว่าอยากจะเห็นอนิเมะจากเกมดังกล่าว โดยล่าสุดก็มีข้อมูลมาให้เราได้ติดตามกันครับคำพูดจาก สล็อตเว็บตรง ข้อมูลนี้มาจากทางเฟซบุ๊ก Nmia ได้แปลมาจากเว็บไซต์ ryokutya2089 ไว้ว่าคุณ Yoo Hyung-Seok ผู้กำกับเกม GODDESS OF VICTORY: NIKKE ได้ให้สัมภาษณ์กับทางนิตยสารไว้เมื่อเร็ว ๆ นี้ เกี่ยวกับแผนการในอนาคตของเกมนี้ไว้…