Two years ago a class action lawsuit was filed against Spotify. In it, the popular streaming service was accused of not paying properly for the licenses required to be able to broadcast some musical pieces. So the company would have used music without a license. They accused her of having scammed the artists. It seems that the case is coming to an end, although the company will have to pay a lot.
Because as some media such as THR have already revealed, Spotify has reached an agreement with the judge. Through this agreement, the company will have to pay $ 112,5 million for its shares. An important setback for the company.
Two artists were the first to start this demand, which was soon joined by more, in addition to music labels. Of the 112 million that the company has to pay, some 43,5 million dollars will be allocated to the labels and artists affected by these actions.
Spotify has consistently defended their innocence and have said that they did not want to play the music without a license or that they were seeking to avoid paying artists. They comment that in some cases it was difficult to find a way to contact the licensees to be able to play that music.
The other part of that amount of money to be paid will be used to have the corresponding rights. In this way, Spotify will be able to play the music without having to fear anything.. Although many of these artists are not entirely happy, as they believe that the company has reached an agreement in order to save millions of additional dollars.
So far there has been no reaction from Spotify. Although it is possible that soon there will be and more is known about this important legal setback for the streaming service. Although the company had previously commented that they were storing the funds they obtained from these reproductions to pay the artists.