Spotify is reportedly getting swamped by cease-and-desist letters after several music publishers accused the streaming platform of hosting unlicensed lyrics, music videos, and podcasts.
According to a demand letter obtained by Billboard, the National Music Publishers Association demands Spotify remove all unlicensed content on the platform or "face copyright liability for continued use of these works."
The NMPA estimated that Spotify would need to pay about $150 million in royalties if the case ever goes to court.
Citing a report from The Wall Street Journal, the music publisher is accusing Spotify of "distributing unauthorized reproductions, synchronizations, displays, and derivative uses of these musical works to its users."
The report refers to the streaming service testing out tools to "speed up, mash-up, and otherwise edit" songs similar to TikTok.
It can be remembered that the same strategy ignited the four-month-long dispute between TikTok and Universal Music Group after it pulled all of its songs from the platform.
NMPA, Spotify Clash Over Licensing Rights
The dispute over licensing in lyrics was not the first time the NMPA and Spotify have clashed over copyright agreements.
The two sides also remain at odds over Spotify's new premium subscription plans that would combine music and audiobooks, a move the NMPA warned would hurt the financial income of its music artists on the platform.
The licensing dispute stems from the ambiguous, unregulated licensing process of royalties in music streaming platforms like Spotify.
According to Billboard, lyrics and video licenses are often a direct deal between the publisher and the streaming service, allowing for unique negotiations and royalty rates.
However, the same licensing process also allows grey areas and loopholes in the contracts after a new platform feature rolls out.
Spotify Alternatives for NMPA-Owned Music
If NMPA did pull its music from Spotify as UMG did on TikTok, users could turn to alternative music streaming platforms to continue listening to their favorite songs.
A few good alternatives would be YouTube Music, Deezer, and Amazon Music.
NMPA represents multiple record labels including UMG, Sony Music Publishing, and Warner Music Group.
