Spotify is in trouble again. The music stream service is being sued for the massive sum of $150 million for allegedly distributing music without permission.
Recording artist David Lowery had filed the suit, which claims that Spotify has distributed several songs by his band Cracker without the correct copyrights. The comapany doesn't have the correct licences in place and this has caused considerable harm to the band.
A statement from Spotify had this to say to The Verge:
"We are committed to paying songwriters and publishers every penny. Unfortunately, especially in the United States, the data necessary to confirm the appropriate rightsholders is often missing, wrong, or incomplete. When rightsholders are not immediately clear, we set aside the royalties we owe until we are able to confirm their identities."
It seems that the company assumed these kinds of law suits are going to come about, and keeps a fund in reserve for payments to artists. Of course it would make more sense for them to make sure they had the right information in the first place, rather than waiting to be publically sued, but at least they're quick to admit they're in the wrong.