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The MLC Sues Spotify for Bundling, Cutting Royalties for Publishers and Songwriters

Spotify was sued by the MLC over bundling and cutting songwriter royalties after it reclassified its premium, duo and family plans as "bundles."

The Mechanical Licensing Collective(the MLC) has filed a lawsuit against Spotify, calling the way the streamer reclassified its premium, duo and family plans as “bundles” and started paying a discounted royalty rate to publishers and songwriters “improper.” Immediately, the National Music Publishers’ Association ( NMPA) began speaking out against Spotify’s reclassification, calling it an “end to our period of relative peace” and “potentially unlawful.” The lawsuit sends a clear message that platforms cannot improperly manipulate usage — in this case unilaterally redefining services as a bundle — in order to devalue music.

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