· music · 1 min read
Spotify's "Bundle" Victory: A Critical Moment for Music Copyright Law
A recent court ruling in Spotify's favor over "bundle" classification could dramatically impact songwriter royalties.
In a pivotal decision on January 29, 2025, Spotify prevailed in a lawsuit brought by the Mechanical Licensing Collective (MLC) over the streaming service’s controversial reclassification of its Premium subscriptions as “bundles.” As I explore in my recent in-depth analysis, this ruling could significantly impact songwriter compensation in the streaming era.
The case centered on Spotify’s March 2024 decision to include 15 hours of audiobook access in Premium subscriptions, allowing them to pay lower mechanical royalty rates under the Phonorecords IV settlement. Judge Analisa Torres of the US District Court for the Southern District of New York dismissed the MLC’s lawsuit with prejudice, potentially setting a precedent that could reshape digital music economics.
This ruling highlights a crucial gap in current copyright law: while record labels can negotiate directly with streaming services, songwriters and publishers remain bound by compulsory licensing rates. With estimates suggesting this reclassification could cost songwriters $150 million in the first year alone, this case raises urgent questions about the adequacy of current copyright protections in the digital age.
For a detailed examination of the ruling and its implications for the music industry, read my full analysis.
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