It seems that along with new opportunities, 2018 is bringing some of the same old headaches for music-streaming giant Spotify, as it has been announced today that they have been slapped with a $1.6 billion suit by Wixen Music Publishing.
Music-streaming service Spotify has allegedly been using thousands of songs without the proper licenses.
In its suit, Wixen says it has opted out of the proposed settlement because it "does not adequately compensate Wixen or the songwriters it represents", who include Neil Young, Stevie Nicks, Donald Fagen of Steely Dan, Rivers Cuomo of Weezer and Zach de la Rocha and Tom Morello of Rage Against the Machine.
The federal lawsuit says almost 11,000 songs are affected, and each issue involves a penalty of $150,000, putting the total to at least $1.6 billion, according to a December 29 filing.
"As a direct and proximate result of Spotify's willful and infringing conduct, Wixen is entitled to actual damages, including the substantial profits of Spotify", the suit reads.
The complaint alleges that as much as 21 percent of the 30 million songs on Spotify are not licensed for use.
In a report from Hollywood Reporter, they say Spotify is getting hit with a $1.6 billion lawsuit from Wixen Music Publishing. Wixen is far from the first publisher or artist to sue them over improper compensation. As Spotify has publicly admitted, and as recent lawsuits and settlements confirm, Spotify has repeatedly failed to obtain necessary statutory, or 'mechanical, ' licenses to reproduce and/or distribute musical compositions on its service.