His departure comes days after reports surfaced that in late December Spotify had confidentially filed to go public. First, it is next to impossible to track and file litigation against all the individuals who are illegally downloading and redistributing music content, but it is definitely possible to identify these major companies that are making it possible.
The company is now being sued in a $1.6bn lawsuit by Wixen Music Publishing, which accuses Spotify of failing to pay mechanical licenses for songs on its service in the US. Wixen Music Publishing, which represents compositions by Tom Petty, Neil Young and others, alleges that Spotify does not have a license to stream the songs. Some of these songs are owned by Wixen via copyright.
Spotify was recently served a lawsuit that demanded up to $1.6 billion in compensation for a number of songs that the company allegedly uploaded without acquiring the proper license. "But Spotify failed to obtain either license type", and instead outsourced that role to the Harry Fox Agency, which the suit says "Spotify knew ... did not possess the infrastructure to obtain the required mechanical licenses and Spotify knew it lacked these licenses". Wixen's claim basically stated that Spotify did not have all the correct licenses to stream certain songs. Wixen is the licensee of songs from popular artists like Missy Elliott, Janis Joplin, Tom Petty, and Fleetwood Mac's Stevie Nicks.
Spotify did not respond to a request for comment.
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Spotify is the biggest global music streaming company and counts Apple Inc AAPL.O and Amazon.com Inc AMZN.O as its main rivals.
Music licensing is notoriously complex, with each song having multiple rights holders who can be hard to identify and locate.
What are your thoughts on the Spotify's lawsuit?