It's not everyday that you see a streaming titan like Spotify get handed a $2 Billion dollar lawsuit. And it's definitely not everyday that you see said lawsuit being spearheaded by a Canadian company. But hey, what a way to start 2018, right?
Jeff Price is the founder of Audiam. They're a Canadian-owned company that helps major artists collect royalties owed to them. This time, it was Spotify that had to pay up. While a number of streaming services pay royalties, the songwriters are often forgotten - and that's what he was there to fix.
According to Price, he provided Spotify with "all the information [they] needed to do what [they] were supposed to do over a three-year period" including "repeatedly sending information".
His work and data is now being used in a lawsuit presented to Spotify by artists like Tom Petty, Stevie Nicks, and Neil Young. Price explains that with every piece of recorded music "there are two separate and distinct copyrights".
The recording of the song is owned by the record label, however, to use the song requires a separate agreement with the composer. So for a song that has a different artist than a composer, there are two separate entities that need to be paid.
The ball is now in Spotify's court. The $24 billion company is expected to go public later this year - and with over 750,000 tracks that stream per minute worldwide - they won't be going anywhere, anytime soon.