The legal battle between Spotify and Eminem’s publisher, Eight Mile Style, took a significant turn this week. Launched in 2019, the lawsuit alleged that Spotify had failed to secure proper licensing for Eminem’s music, including hits like “Lose Yourself” and “Without Me,” which have accumulated billions of streams. Eight Mile Style sought approximately £30 million in damages, claiming the rapper had never received full payment for these streams.
However, a Tennessee judge has ruled that Spotify will not be liable for any lost royalties. Although the court found that Spotify did not hold a valid license to stream the tracks, any potential penalty for copyright infringement would be the responsibility of Kobalt Music Group, the entity that collects royalties on behalf of Eminem’s publisher.
This case highlights the complexities of music rights management in the streaming age. Eight Mile Style’s 2019 lawsuit accused Spotify of deceptive practices, alleging the company misrepresented its licensing status for 243 Eminem tracks and made only “random payments” that fell short of reflecting the massive streaming figures.
Interestingly, Eminem himself was not a direct party to the lawsuit and only learned of the legal action when it was filed. His music remained available on Spotify throughout the five-year case, and he continues to be a top performer on the platform with 76 million monthly listeners.
Spotify defended itself by shifting blame to Kobalt Music Publishing, claiming that Kobalt misled them regarding the administration of Eight Mile’s catalog. Spotify argued that Eight Mile had accepted royalty payments from the service since its US launch in 2011 without questioning the licensing status.
In response, Eight Mile dismissed Spotify’s allegations as “baseless,” and the legal proceedings included a dispute over whether Spotify CEO Daniel Ek would be required to testify. Ultimately, both parties sought a summary judgment to avoid a full trial.
Judge Aleta A. Trauger’s opinion, released on August 15, stated that Spotify should not be held responsible for damages. The judge noted that while Kobalt was authorized to collect royalties, it lacked the rights to license Eminem’s music in the US and Canada. Those rights had been transferred in 2009 to Bridgeport Music, an affiliate of Eight Mile Style. The judge criticized Eight Mile for not notifying third parties of this change and suggested that the company’s actions appeared to be a strategic move to extract money from Spotify.
Despite ruling in favor of Spotify, Judge Trauger pointed out that the streaming service’s contract with Kobalt did not include a comprehensive database of licensable songs, which could have contributed to confusion. However, the contract did include a provision protecting Spotify against copyright claims on works administered by Kobalt. As a result, Spotify may face significant legal fees as it continues to deal with the fallout from this case.
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