Sony Music files lawsuit against Napster over missing royalty payments
The major label has claimed the streaming platform owes millions in royalties and kept using its music after a terminated deal.
Napster is facing serious legal trouble following a new lawsuit filed by Sony Music. According to Billboard, the major label claims that Napster owes more than $9.2 million in unpaid royalties. This is not the first lawsuit to involve Napster and unpaid royalties.
Sony alleges that Napster stopped making royalty payments over a year ago, which led to the termination of their licensing agreement in June 2025. Despite the contract ending, Sony claims Napster continued to stream its music and videos, raising further legal concerns around copyright infringement.
Back in June, US licensing agency SoundExchange also filed a lawsuit against Sonos over unpaid royalties during the time its Sonos Radio service was powered by Napster between 2020 and 2023.
What makes the situation more concerning is that these issues have not been resolved, even though Napster was bought in March by Infinite Reality. The firm acquired Napster for $207 million, not long after it completed a massive $3 billion funding round, which valued it at $12.25 billion.
As MusicAlly points out, with such significant backing, many expected that any outstanding debts with music rightsholders would be settled quickly. But with Sony Music now taking legal action, it’s clear that not all issues have been addressed.
Napster’s spokesperson gave a short statement to Billboard, saying: “We have no comment on pending litigation. However, we deeply value our relationships with all of our partners. We remain committed to rebuilding Napster’s relationships with all of the major labels and are hopeful for a swift and amicable resolution.”
Whether this lawsuit will be settled privately or go to court remains to be seen. But for now, it’s a reminder of how critical licensing agreements and timely royalty payments are in the music business.