A federal judge has temporarily halted Spotify's pursuit of damages from Kobalt in the ongoing litigation involving Eminem's publisher Eight Mile Style. Judge Aleta A. Trauger's decision comes after Kobalt requested reconsideration of the underlying judgment or a pause on damages pending appeal.

The complex legal battle began with Eight Mile Style's initial infringement complaint against Spotify, later adding Harry Fox Agency as a defendant in 2020. Spotify then brought Kobalt in as a third-party defendant, arguing that Kobalt should be responsible for any due royalties and damages.

In August 2024, despite noting "Spotify's handling of composer copyrights appears to have been seriously flawed," the judge partially granted Spotify's motion for summary judgment regarding indemnification under their 2016 blanket license agreement with Kobalt.

The core dispute now centers on the definition of "administer" and whether the indemnification provision applies to works where Kobalt lacked U.S. mechanical licensing authority, such as the Eminem compositions. This authority belonged to Bridgeport Music, a publisher associated with Eight Mile Style.

Judge Trauger determined it would serve justice and efficiency to allow the liability question to be appealed alongside other case issues. The court has ordered judgment to be entered on all claims except those favoring Spotify against Kobalt, setting the stage for the appeal process.

The decision effectively pauses Spotify's sealed motion for "substantial attorney's fees," for which the company had suggested potentially requiring a special master to review documentation.

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