Spotify is being accused of engaging in “direct infringement by hosting unlicensed musical works in its lyrics, videos and podcasts” by the National Music Publishers Association. In a new letter sent to the music streaming service this week, the NMPA alleges that Spotify “distributes music videos and podcasts using musical works without the consent of or compensation.”
In the letter, the full text of which was obtained by Billboard, the NMPA says that Spotify hosts “unlicensed musical works” and profits from that content – without paying the respective publishers and rights holders:
Spotify thus appears to be engaged in direct infringement by hosting unlicensed musical works in its lyrics, videos, and podcasts, and by distributing unauthorized reproductions, synchronizations, displays, and derivative uses of these musical works to its users. Making matters worse, Spotify profits from such infringement.
The NMPA also takes issue with Spotify’s plans to allow users to remix songs:
We also understand that Spotify wishes to offer a “remix” feature allowing Spotify subscribers to “speed up, mash up, and otherwise edit” their favorite songs to create derivative works. Spotify is on notice that release of any such feature without the proper licenses in place from our members may constitute additional direct infringement.
As such, the NMPA says:
Accordingly, on behalf of our members, NMPA demands that unlicensed lyrics, music videos, and podcasts be removed from the platform or Spotify will face copyright liability for continued use of these works.
Top comment by Eric Swinson
This is something regulators don't seem to understand. Some business models cannot exist on their own. Certain services have to be subsidized from more profitable and unrelated offerings by the company otherwise the cost to consumers has to go up. There is price sensitivity to streaming music by the market that caps the service at a price that won't cover the license and cost obligations of a company like Spotify. The brutal truth is Spotify could reduce their Appstore commissions to zero and allow direct in-app signups and still not be able to meet their obligations without raising their rates to a level that will drive away subscribers.
Notably, Apple Music is not mentioned at all in the NMPA’s letter, signaling that the organization is solely accusing Spotify of such infringement. Historically, Apple Music has been much friendlier to artists and creators than Spotify, paying royalty rates that at least double per stream.
You can read the full letter from the NMPA to Spotify over at Billboard.
Spotify statement:
This letter is a press stunt filled with false and misleading claims. It’s an attempt to deflect from the Phono IV deal that the NMPA agreed to and celebrated back in 2022. We paid a record amount to benefit songwriters in 2023, and we are on track to exceed this amount in 2024. Spotify is a platform for licensed content. We are committed to the integrity of our platform, and we have a clear process in place for rightsholders to contact Spotify about any content they believe is unlicensed.
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