Spotify platform sued for unpaid royalties by rights collection organization

Spotify platform sued for unpaid royalties by rights collection organization

The streaming platform Spotify is being sued by the organization responsible for collecting music rights from streaming platforms, the Mechanical Licensing Collective (MLC). She is accused of underpaying artists in royalties. She will have to explain herself in federal court.

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With our correspondent in New York, Loubna Anaki

For artists, the shortfall would be estimated at more than $150 million over the next year. All because the streaming platform Spotify has reportedly changed the rules for recognizing revenue from its paid plan. A decision which would have halved this income. In any case, this is what the Mechanical Licensing Collective (MLC) says, responsible for collecting and distributing music rights to sound streaming platforms.

According to specialized media, Spotify has changed the offer of its paid plan by offering its subscribers a more extensive catalog, but which at the same time reduces the percentage of income donated. The suit was filed in federal court in Manhattan. Spotify is accused of having unilaterally reduced the royalties paid to artists.

For its part, the platform defends itself and ensures that it attributes almost 70% of the turnover generated by streaming to artists. She says she donated more than $9 billion last year.

Read alsoMusic streaming giant Spotify announces the elimination of one in six jobs

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