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Spotify Sued by Nonend Over Technology for Music Sharing

Aug. 17 (Bloomberg) -- Spotify Ltd. was sued by Nonend Inventions NV over technology that allows Spotify users to get music from the streaming service and other subscribers.

Netherlands-based Nonend accuses Spotify of “making, using, offering to sell, and selling streaming music services to users which incorporate methodologies that infringe one or more claims” of certain patents, according to court papers filed in federal court in Delaware.

Closely held Spotify said in November it had 10 million registered users worldwide, and 3 million paying subscribers. Spotify July 31 said 5 million more subscribers signed up for its ad-supported music service since January, with expansion into countries including Australia and New Zealand.

Spotify has content agreements with Sony Corp.’s Sony Music, Vivendi SA’s Universal Music, EMI Group and Warner Music Group. Under those agreements, artists, record companies and publishers receive a cut of ad sales and subscriber fees.

Graham James, spokesman for Spotify, didn’t immediately respond to an e-mail seeking comment about the lawsuit.

The case is Nonend Inventions NV v. Spotify USA Inc., 1:12-cv-01041, U.S. District Court, District of Delaware (Wilmington).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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