"Wixen Music Publishing Inc, who is the sole licensee of gems like "Free Fallin" by Tom Petty, "Light My Fire" by the Doors, "(Girl We Got a) and Good Thing" by Weezer, claims Spotify streamed these and countless others like them without a direct or a compulsory license granted permission.
Of course, Spotify may just be trying to find a loophole in their mounting legal problems.
"Prior to launch, Spotify struck deals with major record labels to obtain the necessary rights to the sound recording copyrights in the songs by offering the major labels, in many cases, equity stake in Spotify", Wixen said in its lawsuit. In addition to the massive sum of money listed in the suit, Wixen also is also seeking an injunctive relief that would legally require Spotify to "develop and implement procedures for identifying and properly licensing songs". In July, they were hit with two lawsuits, one of which from a songwriter and member of Frankie Valli and the Four Seasons, over proper compensation. What Spotify failed to do, according to the lawsuit, was "obtain the equivalent rights for the compositions".
If not settled quickly, and there are no signs that will happen, this latest lawsuit along with the class action suit others that are pending, could delay or even derail Spotify's initial public stock offer tentatively planned for later this year.
In that settlement, Spotify admitted to failing to obtain necessary statutory licenses to reproduce and/or distribute musical compositions on its platform, the lawsuit says.
Read the Wixen complaint in its entirety here.