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Sony Music Files Federal Lawsuit Against Napster Over $9.2 Million in Unpaid Royalties

Sony’s August 1 filing in Manhattan federal court says Napster’s March acquisition by Infinite Reality triggered a licensing clause that was breached when no installment payments were made.

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Overview

  • The suit targets Napster, parent Rhapsody International and owner Infinite Reality for failing to pay $9.2 million in licensing fees after streaming Sony’s catalog for over a year.
  • Sony is seeking statutory damages of up to $150,000 per infringed song, amounting to roughly $36–37.5 million based on a list of 240 works.
  • After Infinite Reality acquired Napster for $207 million in March, Sony activated a termination right but agreed to a four-part payment plan that went unpaid.
  • Sony sent a breach notice in May and formally ended its licensing agreements in June, yet Napster has continued to reproduce and publicly perform Sony Music recordings without authorization.
  • This lawsuit adds to Napster’s mounting legal challenges, following June claims by SoundExchange and Sonos for more than $3.4 million in unpaid royalties.