A federal judge has denied Spotify's early motion for summary judgment against Kobalt in an ongoing legal dispute over allegedly unpaid royalties for Eminem's music streams.

The case, which began in August 2019, involves Eminem's publisher Eight Mile Style seeking $36 million in damages from Spotify for allegedly infringing upon 243 of the rapper's compositions. Eight Mile Style also demands advertising revenue and equity interest compensation.

Spotify maintains its innocence, claiming it was properly licensed through Kobalt, Eight Mile's agent, leading to Kobalt being named as a third-party defendant. The Harry Fox Agency was later added as a defendant, accused of participating in a "fraudulent scheme" to hide licensing failures.

Judge Aleta A. Trauger's ruling allows Kobalt to further develop its case before any decisions on indemnification. Key points of contention include:

• Spotify's awareness that Kobalt's 2016 agreement only covered its administered share of compositions
• Contract language regarding necessary payments and licenses
• Dispute over the definition of "Publisher Compositions" and Kobalt's licensing rights

The case highlights ongoing tensions between music publishers, streaming platforms, and licensing agencies. Kobalt, currently involved in a separate licensing dispute with Meta, argues it never had rights to license the compositions in question, while Spotify contends this is irrelevant under their agreement's terms.

The case remains ongoing, with further developments expected as both parties continue their legal battle over licensing rights and royalty payments.

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