Spotify fights appeal bid as songwriter royalties stay messy

Spotify's legal fight over songwriter pay is getting messier. The licensing collective wants to fast-track an appeal on a ruling about audiobook bundles. This stems from Spotify adding audiobook access to its premium tier, which lowered royalty rates. The group sued, claiming this move illegally cut payments to publishers and songwriters.

A judge previously dismissed the initial claim but allowed an amended complaint to proceed. The collective argues the core bundling issue needs immediate appellate review. They state the ruling already negatively impacts rightsholders and lacks higher court scrutiny. Spotify calls the appeal request unreasonably delayed and legally unjustified.

The dispute centers on how Spotify reclassified its subscription service. This reclassification followed a copyright board settlement allowing lower rates for multimedia bundles. The collective's amended complaint introduces new arguments about service valuation and proper classification. Major music publishers have since secured direct deals with Spotify, sidestepping the contested rates.

Spotify disclosed a potential financial exposure reaching hundreds of millions if the lawsuit fully succeeds. The judge has not yet decided on allowing the immediate appeal. The licensing collective maintains it will pursue an appeal on the bundling issue regardless of the amended case's outcome. Both parties continue trading arguments over procedural timing and legal merits.
 

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