Popular music streaming service Spotify hit with $1.6 billion copyright lawsuit

Spotify is accused of using thousands of songs without a license and compensation to the music publisher.

Spotify hit with $1.6 billion copyright lawsuit (REUTERS)

Music streaming company Spotify was sued by Wixen Music Publishing Inc last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and the Doors, without a license and compensation to the music publisher.

Wixen, an exclusive licensee of songs such as "Free Fallin" by Tom Petty, "Light My Fire" by the Doors, (Girl We Got a) Good Thing by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $1.6 billion along with injunctive relief.

Spotify failed to get a direct or a compulsory license from Wixen that would allow it to reproduce and distribute the songs, Wixen said in the lawsuit, filed in a California federal court.

Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was "ill-equipped to obtain all the necessary mechanical licenses".

Spotify declined to comment.

In May, the Stockholm, Sweden-based company agreed to pay more than $43 million to settle a proposed class action alleging it failed to pay royalties for some of the songs it makes available to users.

Spotify, which is planning a stock market listing this year, has grown around 20 percent in value to at least $19 billion in the past few months.