Just before the New Year, Camper Van Beethoven and Cracker frontman David Lowery dropped a bomb on the music business in the form of a proposed class-action copyright-infringement lawsuit against Spotify. The suit, filed on Lowery’s behalf by the law firm Michelman & Robinson, asserts that Spotify lacks mechanical licenses for many of the songs it’s streaming. (In addition to paying public performance royalties through ASCAP and BMI, streaming services like Spotify also need to get mechanical licenses for songs, either by striking direct deal with publishers or using the statutory license.) The lawsuit says Spotify could potentially be liable for up to $150 million in damages.
Read the rest of this page »