The MLC and Pandora Media file competing motions in royalty suit

A two-year fight over whether a free streaming tier counts as interactive radio just hit the summary judgment stage, with both sides claiming the facts back them up.

The Mechanical Licensing Collective says Pandora owes unpaid mechanical royalties

• The MLC filed its motion on February 5 in the Tennessee federal court.
• Pandora Free lets users search and play songs on demand, according to filings.
• Premium Access sessions give free users 30 minutes of premium features after ads.
• The collective sent Pandora a notice back in November 2021 about underpayment.

Pandora argues its free tier runs as non-interactive internet radio

• The streaming service filed its own summary judgment motion the same day.
• Free users can't pick specific sound recordings of their choosing, Pandora claims.
• Section 115 of the Copyright Act exempts noninteractive radio from mechanical licensing.
• Pandora says the lawsuit is a gross overreach by the MLC.

The MLC was created to collect and distribute mechanical royalties

• The Music Modernization Act of 2018 established the collective as the sole entity.
• It works with blanket licensees to ensure compliance with reporting and payment rules.
• The organization sued Spotify in May 2024 over alleged bundling underpayments.
• That Spotify case got dismissed with prejudice in January 2025.

Pandora claims the MLC lacks proper authority for enforcement actions

• The company says the collective is abusing its limited statutory role.
• Pandora argues the MLC is trying to overturn two decades of industry practice.
• The service waited nearly two years before Pandora filed a motion to dismiss.
• Pandora's assessments to the MLC are partially funding this litigation.