Eminem’s music
publisher, Eight Mile Style, has settled a $30 million lawsuit against Spotify,
accusing the streaming giant of significant copyright infringement. The
lawsuit, which gained attention earlier this year, alleged that Spotify had
streamed Eminem’s music, including the hit track “Lose Yourself,” without
obtaining the necessary licenses, resulting in substantial financial damages
for the publisher.
The legal action was
two-pronged. Firstly, Spotify is accused of deliberately overlooking Eight Mile
Style’s ownership of Eminem’s catalog when determining how to allocate
streaming revenue for his music. Eight Mile Style claimed that Spotify failed
to properly recognize and respect the publisher’s ownership rights, which led
to erroneous revenue calculations and an unfair distribution of earnings. The
publisher argued that Spotify’s negligence in acknowledging its ownership
rights resulted in significant financial losses and an inequitable share of
streaming revenue.
Secondly, Spotify allegedly
breached certain provisions of the Music Modernization Act (MMA), enacted in
October 2018. The MMA was designed to simplify the payment process for artists,
songwriters, producers, and rights holders from online music streams. Eight
Mile Style contended that Spotify did not meet the MMA’s requirements,
particularly regarding acquiring mechanical licenses necessary for the lawful
distribution of music on streaming platforms. This failure to comply with the
MMA contributed to improper compensation and further financial damage.
However, in a twist,
Spotify presented a third-party complaint shared by Music Business Worldwide in
2020, asserting that it had been licensed by Kobalt Music Group to use Eminem’s
greatest hits. According to Spotify’s representative, Kobalt had authorized the
streaming of tracks such as “The Way I Am,” “Lose Yourself,” and “Just Lose
It.” Spotify claimed to have a Mechanical License Agreement with Kobalt, which
should protect it from claims by third parties alleging infringement of
intellectual property rights.
Judge Aleta Trauger of
Tennessee, who presided over the case, ruled that while Spotify’s handling of
composer copyrights appeared to have been flawed, the right to recover damages
belonged to those rights holders who were genuinely harmed. Judge Trauger stated,
“While Spotify’s handling of composer copyrights appears to have been seriously
flawed, any right to recover damages based on those flaws belongs to those
innocent rights holders who were genuinely harmed.”
The settlement marks a
significant development in the ongoing challenges within the music industry
related to copyright enforcement and fair compensation. It underscores the need
for streaming platforms to manage complex licensing requirements effectively
while ensuring transparency and fairness in their practices.
Source:
https://www.bbc.com/news/articles/cewlqppepjyo
