Spotify has emerged victorious in a protracted legal battle against Eight Mile Style, the publisher representing rapper Eminem. The case, which has been ongoing since 2019, centered around allegations that Spotify had been streaming Eminem’s music without proper licensing and failing to compensate the artist for his hits, including “Lose Yourself” and “Without Me.”
Eight Mile Style had originally filed the lawsuit claiming that Spotify had streamed Eminem’s tracks billions of times without securing the correct licenses. The publisher sought approximately £30 million in damages, asserting that Eminem had not received full payment for his music despite its massive popularity on the streaming platform.
However, the recent ruling from a Tennessee judge has found in favor of Spotify, concluding that the streaming service is not liable for any lost royalties. The court determined that although Spotify did not possess a valid license to stream the tracks in question, the company would not be held responsible for damages. The ruling also highlighted that any penalties for copyright infringement would fall upon Kobalt Music Group, which had been collecting royalties on behalf of Eight Mile Style.
This case underscores the complexities and challenges of music rights management in the streaming age. Eight Mile Style accused Spotify of deceptive practices, alleging that the company falsely claimed to hold licenses for 243 of Eminem’s songs. The publisher further alleged that Spotify had made “random payments” for these tracks, which did not reflect the massive number of streams they received.
Interestingly, Eminem himself was not a party to the lawsuit and reportedly became aware of the legal action only after it was filed. His music continued to be available on Spotify throughout the five-year legal process. Despite the legal battle, Eminem remains one of Spotify’s most-streamed artists, currently ranking 12th with 76 million monthly listeners.
Spotify’s defense in the lawsuit largely rested on blaming Kobalt Music Publishing, the entity responsible for administering the rights to a vast catalog of songs and collecting royalties. Spotify claimed that Kobalt had misled them into believing it controlled the rights to Eminem’s music, when in reality, those rights were held by Bridgeport Music, a company affiliated with Eight Mile Style.
The legal dispute was marked by intense back-and-forth arguments and delays, including a momentary halt over whether Spotify CEO Daniel Ek would be deposed. The case was eventually resolved through a summary judgment, avoiding a full trial.
Judge Aleta A. Trauger’s opinion, delivered on August 15, reflects on the confusing nature of music rights management. She noted that although Kobalt was authorized to collect royalties for Eminem’s music, it lacked the rights to license the tracks in the US and Canada, as these rights had been transferred to Bridgeport Music in 2009. This lack of formal notification about the change in licensing authority was deemed “inexplicable” by the judge.
The ruling also criticized Eight Mile Style for not taking action to resolve the issue or notify Spotify of its licensing authority changes. The judge suggested that Eight Mile Style might have strategically used the situation to claim infringement, as being a victim of infringement could potentially be more financially beneficial than being a straightforward licensor.
Despite Spotify’s victory, the company will still be responsible for covering its legal fees accrued over the course of the case, which could amount to a significant sum. The decision highlights the ongoing challenges and intricacies of copyright and licensing in the digital music era, illustrating the need for clearer and more effective management of music rights in the streaming industry.
