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California class action targets streaming company Spotify

On December 28, a class action lawsuit filed in the Central District Court of California sought a $150 million sum from Spotify. The music streaming company, which had been in the process of working out a settlement with the National Music Publishers Association after it didn't pay royalties properly, was once again accused of failing to secure mechanical licenses for the music it lets its users stream.

Allegations against the company include the accusation that it admitted to not getting the licenses it should have to stream artists' music. The suit also notes that the firm has already created a reserve fund for royalty payments it didn't previously distribute. Because the proposed legal action includes more than 100 members, it will be entered as a class action lawsuit to reduce the burden on the court system and help more copyright holders take part.

The complaint also requested that Spotify stop infringing on copyrights and fund an independent auditor to identify works it already streamed in violation of people's intellectual property rights. A Spotify spokesperson claimed that the company's past transgressions arose because it was unable to determine who actually held the rights to the music it streamed and that it usually reserves royalties for artists so that they can be reimbursed at a later date.

Violations of Uniform Commercial Code and contracts may result in people's intellectual property being used without their knowledge or permission. In such cases, the businesses or entities that commit such crimes may divert significant profits away from the original content creators and seriously compromise their ability to sustain their future business or personal activities. Those who believe that their rights have been abused in such a fashion may find it helpful to learn more about ongoing legal actions or research how they can initiate formal complaints.

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