A federal judge has dismissed the Mechanical Licensing Collective's (MLC) bundling-focused copyright lawsuit against Spotify, marking a significant legal victory for the streaming platform's bundling strategy.

Judge Analisa Torres granted Spotify's dismissal motion, ruling that the platform's decision to reclassify U.S. subscriptions as music and audiobook bundles is legally sound. The court found that Section 115 and its implementing regulations unambiguously support Spotify's position.

Key Points of the Ruling:

• Audiobook streaming qualifies as a distinct product from music streaming
• The service has "more than token value"
• Premium subscriptions are properly categorized as bundles
• The timing of Spotify's reclassification is legally irrelevant
• The number of subscribers accessing audiobooks doesn't affect the bundle status

Current Impact:

• Bundles now account for over 99% of Spotify's U.S. subscriptions
• The strategy has saved Spotify over $100 million in royalty payments
• Spotify has secured a direct deal with Universal Music Publishing Group

Industry Implications:

• Other platforms like Apple Music and Amazon Music may follow similar bundling strategies
• The ruling could influence future streaming service negotiations
• The decision may affect how bundle offerings are structured across the industry

Spotify maintains that bundle offerings play a crucial role in expanding paid music consumption and growing industry revenue, emphasizing the potential for collaboration through direct licenses to create additional benefits.

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