Spotify Isn’t Laughing Off This Lawsuit

For the past few years, Spotify has been the music industry’s dream: a popular online service that’s also willing to pony up for licensing fees. But a copyright infringement suit filed by David Lowery, the frontman for Cracker and Camper Van Beethoven, says Spotify hasn’t fully paid for many of the songs it streams. Lowery is seeking class-action certification. The implication is that the company, which prides itself on providing a compelling alternative to online piracy, has built its business by begging forgiveness instead of asking permission.

Lowery’s suit, filed right before the new year, says Spotify’s unlicensed streams of his and other songwriters’ compositions could make the company liable for up to $150 million, because statutory damages for copyright infringement range from $750 per work to $150,000 for willful infringement. The case could have ripple effects far beyond Spotify. Because it turns on a licensing issue shared by most of the streaming services that let users choose which songs they hear, it could affect a wide range of online music options, including Apple Music.