{"id":103374,"date":"2025-02-17T15:22:15","date_gmt":"2025-02-17T15:22:15","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=103374"},"modified":"2025-02-17T15:22:19","modified_gmt":"2025-02-17T15:22:19","slug":"mlc-asks-court-to-reconsider-spotify-bundling-case-dismissal","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/mlc-asks-court-to-reconsider-spotify-bundling-case-dismissal\/","title":{"rendered":"MLC asks court to reconsider Spotify bundling case dismissal"},"content":{"rendered":"\n&#8211; <h2 style=\"user-select: auto;\"><span style=\"color: #3366ff; user-select: auto;\">The MLC fights back after its lawsuit against Spotify was initially dismissed last month.<\/span><\/h2>\n\n\n\n<p>The US Mechanical Licensing Collective (MLC) has asked the court to reconsider its decision to <a href=\"https:\/\/routenote.com\/blog\/spotify-wins-mlc-bundling-lawsuit\/\" target=\"_blank\" rel=\"noreferrer noopener\">dismiss the lawsuit <\/a>against Spotify over its Premium bundling strategy.<\/p>\n\n\n\n<h3>The case so far<\/h3>\n\n\n\n<p>The <a href=\"https:\/\/routenote.com\/blog\/spotify-and-mlc-go-head-to-head-over-royalty-changes\/\" target=\"_blank\" rel=\"noreferrer noopener\">lawsuit <\/a>centers around Spotify\u2019s move to reclassify its Premium subscriptions as music-and-audiobook bundles, allowing <a href=\"https:\/\/routenote.com\/blog\/upload-your-music-to-spotify-for-free\/\" target=\"_blank\" rel=\"noreferrer noopener\">Spotify <\/a>to pay lower mechanical royalties to songwriters and music publishers.<\/p>\n\n\n\n<p>Last month, Judge Analisa Torres dismissed the case \u201cwith prejudice,\u201d meaning the MLC could not file a new lawsuit on the same claims. The court ruled that Spotify had correctly categorised its Premium offering as a bundle under the compulsory licensing framework.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-routenote-blog wp-block-embed-routenote-blog\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"qzn7pgCSEW\"><a href=\"https:\/\/routenote.com\/blog\/spotify-wins-mlc-bundling-lawsuit\/\">Spotify wins MLC bundling lawsuit<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Spotify wins MLC bundling lawsuit&#8221; &#8212; RouteNote Blog\" src=\"https:\/\/routenote.com\/blog\/spotify-wins-mlc-bundling-lawsuit\/embed\/#?secret=qzn7pgCSEW\" data-secret=\"qzn7pgCSEW\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3>Why does the MLC want the court to reconsider?<\/h3>\n\n\n\n<p>In response, the MLC has filed a \u2018Motion for Reconsideration,\u2019 asking the court to review its decision. If the motion is denied, the MLC is requesting the judgement to be vacated so it can file an amended complaint.&nbsp;<\/p>\n\n\n\n<p>According to MLC CEO Kris Ahrend, the court\u2019s ruling overlooked \u201c<a href=\"https:\/\/musically.com\/2025\/02\/14\/mlc-wants-district-court-to-reconsider-spotify-case-dismissal\/\" target=\"_blank\" rel=\"noreferrer noopener\">several significant issues<\/a>\u201d. The organisation argues that it would be an injustice if the ruling remains outright dismissed, as it involves \u201can unprecedented interpretation of regulatory language that would have far-reaching and profound financial consequences on an entire creative industry.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>\u201cWe believe that seeking clarity on these issues is an important part of our statutory responsibilities and serves the interests of our stakeholders.\u201d<\/strong><\/p><cite>Kris Ahrend, MLC CEO<\/cite><\/blockquote>\n\n\n\n<h3>The core of MLC&#8217;s argument<\/h3>\n\n\n\n<p>The MLC\u2019s latest motion is built on three main points:<\/p>\n\n\n\n<h4>Spotify&#8217;s underpaid royalties<\/h4>\n\n\n\n<p>The MLC claims that the court dismissed the case without considering all claims that Spotify failed to pay its royalties owed.<\/p>\n\n\n\n<p>The MLC is dialing in on Spotify\u2019s alleged royalty underpayments. It argues that Spotify\u2019s $9.99-per-month audiobook-only tier is misleading and invalid as the package includes both books and music. This artificially inflates the audiobook component and reduces the share allocated to music, resulting in a significant underpayment of royalties.<\/p>\n\n\n\n<h4>Misinterpretation of bundling standards<\/h4>\n\n\n\n<p>The MLC argues that the court wrongly concluded that Spotify\u2019s Premium plan qualifies as a bundle, misapplying the standard on a motion to dismiss.<\/p>\n\n\n\n<p>The MLC maintains that the 15 hours of audiobook access does not hold more than \u201ctoken value\u201d for Spotify Premium, required to qualify as a bundle under the compulsory licence. Despite the Judge deeming it to hold value, the MLC still believes it holds minimal value for the \u201cmillions of premium subscribers who purchased the service to get access to unlimited, on-demand, ad-free music, not audiobook listening.\u201d<\/p>\n\n\n\n<h4>Request to amend the complaint<\/h4>\n\n\n\n<p>If reconsideration is denied, the MLC is requesting \u201cthe judgement should be vacated to provide the MLC an opportunity to\u201d amend its complaint regarding \u201cadditional facts relating to Spotify\u2019s prior reporting of Premium as a standalone Subscription\u201d.&nbsp;<\/p>\n\n\n\n<p>The MLC points out that Spotify initially reported Premium as a standalone music service, even after introducing audiobooks, which contradicts its current bundling classification.<\/p>\n\n\n\n<h3>What&#8217;s next?<\/h3>\n\n\n\n<p>Major publishers like <a href=\"https:\/\/routenote.com\/blog\/spotify-and-universal-music-groups-new-deal-pushes-towards-the-future-of-streaming\/\" target=\"_blank\" rel=\"noreferrer noopener\">Universal Music Group<\/a> and <a href=\"https:\/\/routenote.com\/blog\/spotify-and-warner-music-group-announce-new-multi-year-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Warner Music Group<\/a> have since negotiated direct licensing deals with Spotify, removing the bundling issues for their catalogues. However, the MLC\u2019s fight continues on behalf of other rights holders.<\/p>\n\n\n\n<p>If the court agrees to reconsider the case, Spotify could face financial repercussions. Industry estimates suggest its bundling strategy saved Spotify <strong><a href=\"https:\/\/completemusicupdate.com\/judge-throws-out-mlcs-audiobooks-bundle-lawsuit-says-spotify-can-keep-cutting-songwriter-royalties-through-its-cynical-trick\/\" target=\"_blank\" rel=\"noreferrer noopener\">over $150 million<\/a><\/strong> in its first year alone. If the MLC prevails, those savings could be redirected to songwriters and publishers.<\/p>\n\n\n\n<p>For now, all eyes await the court\u2019s response and whether they will reconsider the case.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/routenote.com\/blog\/upload-your-music-to-spotify-for-free\/\" target=\"_blank\" rel=\"noreferrer noopener\">Want to share your music to streaming platforms such as Spotify? With unlimited uploads and seamless distribution, use RouteNote to share your music to audiences everywhere, completely free.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The MLC fights back after its lawsuit against Spotify was initially dismissed last month.<\/p>\n","protected":false},"author":47,"featured_media":103377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13,1],"tags":[825,30502,30515,30516],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.4.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MLC asks court to reconsider Spotify bundling case dismissal - RouteNote Blog<\/title>\n<meta name=\"description\" content=\"The MLC fights back after its lawsuit against Spotify was initially dismissed last month.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/routenote.com\/blog\/mlc-asks-court-to-reconsider-spotify-bundling-case-dismissal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MLC asks court to reconsider Spotify bundling case dismissal - 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