Wixen's $1.6 Billion Spotify Lawsuit: Here Are the Details

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Blom, who first joined Spotify in 2014, was responsible for helping the streamer ink licensing pacts with music labels as well as helming its original video strategy. Axios first reported news of the filing.

A direct listing mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO along with many associated fees and could change the way companies approach selling shares to the public.

Music streaming service Spotify has filed confidentially with US regulators for an initial public offering and is targeting a direct listing in the first half of 2018 that would allow some longtime investors to cash out, a source familiar with the matter said on Wednesday.

The company is now being sued in a $1.6bn lawsuit by Wixen Music Publishing, which accuses Spotify of failing to pay mechanical licenses for songs on its service in the US. The lawsuit alleges that Spotify took a "shortcut" and did not obtain the musical composition copyright for 10,784 songs published by Wixen.

The suit was filed last Friday in the state of California, United States.

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The lawsuit alleged Spotify had used thousands of songs without properly getting the license to distribute them, according to The Hollywood Reporter.

A rep for Spotify declined Variety's request for comment.

Spotify is facing a $1.6 billion lawsuit, issued by Wixen Music Publishing.

Music licensing is notoriously complex, with each song having multiple rights holders who can be hard to identify and locate. In its lawsuit, it said its songs have been downloaded or streamed billions of times through Spotify and that it received no revenue for that. They already have a $43 million settlement which was proposed back in May.

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