MLC Appeals Court's Spotify Bundling Lawsuit Dismissal, Citing Industry-Wide Financial Impact

MLC Appeals Court's Spotify Bundling Lawsuit Dismissal, Citing Industry-Wide Financial Impact

By Marcus Hartley

February 14, 2025 at 10:23 PM

The Mechanical Licensing Collective (MLC) has filed a motion asking a federal court to reconsider its January dismissal of a lawsuit against Spotify's bundling practices.

MLC logo with royalties headline

MLC logo with royalties headline

The dispute centers on Spotify's reclassification of its main U.S. subscriptions as bundles, a move that has reportedly saved the company over $100 million in royalty payments. The MLC's key arguments include:

  1. Spotify Premium doesn't qualify as a bundle under law, especially since audiobooks were available before the bundling classification
  2. The 15 hours of monthly audiobook access provides only "token value" to subscribers
  3. Spotify's previous certification of Premium as a standalone subscription contradicts its current bundle classification

The MLC is requesting either:

  • A reconsideration of the dismissal
  • Permission to amend their complaint to address additional issues

If allowed to amend, the MLC plans to challenge:

  • Spotify's royalty calculations under the bundle formula
  • The $9.99 price point used in bundling calculations, which they claim is invalid
  • The alleged improper inflation of Premium's audiobook component pricing

NMPA music bundling image

NMPA music bundling image

The MLC argues these pricing practices have resulted in significant underpayment of royalties, potentially causing "profound financial consequences on an entire creative industry."

Related Articles

Previous Articles