Spotify has won a significant legal battle against Eight Mile Style, the co-publisher of 242 Eminem tracks, in a complex mechanical licensing lawsuit.

The case, which began in 2019, centered on allegations that Spotify streamed Eminem's songs without proper mechanical licenses. Interestingly, while the court found Spotify didn't have proper licensing, they still ruled in Spotify's favor.

Key Points of the Case:

• Eight Mile Style sued Spotify in August 2019, claiming billions of streams went uncompensated
• Eminem was reportedly unaware of the lawsuit before it was filed
• The lawsuit challenged aspects of the Music Modernization Act (MMA)
• Spotify brought Kobalt Music Group into the lawsuit as a third-party defendant

The Court's Decision:

Judge Aleta A. Trauger concluded that Eight Mile Style had engaged in "scheming" to extract maximum payment from Spotify. The court found that Eight Mile Style had failed to properly communicate that licensing rights had been transferred from Kobalt to Bridgeport in 2009.

Important Findings:

• Spotify had been paying royalties through Kobalt since 2011
• Kobalt wasn't actually authorized to license Eight Mile's music in the US and Canada
• The complex music industry practices made Spotify's confusion about rights ownership plausible

Final Outcome:

While Spotify won the case, Kobalt must pay reasonable attorney's fees and expenses. The ruling highlights the complexity of music rights management in the streaming era and the importance of clear communication in rights transfers.

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