Spotify Faces Legal Battle Over Alleged Underpayment of Royalties

Mechanical Licensing Collective accuses Spotify of reducing songwriter royalties through reclassification of subscription plans.

The lawsuit claims Spotify's bundling of music and audiobooks has cut royalty payments by nearly 50%.
Mechanical Licensing Collective seeks recovery of unpaid royalties and corrected usage reporting.
Spotify maintains that the terms were agreed upon in a previous settlement and expects a swift resolution.
Industry groups support the lawsuit, highlighting the financial impact on songwriters and publishers.
Spotify argues that the bundling will ultimately benefit creators through increased subscriptions.