Spotify Wants Rock Musician’s Copyright Infringement Class Action Tossed

Spotify USA Inc. asked a California federal judge to discard an independent rock musician’s proposed class action lawsuit accusing the music streaming service of copyright infringement that seeks over $150 million in damages.

Spotify, a Delaware corporation headquartered in New York, argued that the court lacks personal jurisdiction in California since Spotify and its relevant employees are in New York.

Spotify said even if the court does not dismiss the suit, it requests that the litigation be transferred to the Southern District of New York where the company conducts its primary business.

In the motion to dismiss, Spotify argues that Lowery is a Georgia resident with no ties to California. The company maintains that musical composition licensing in the U.S. is handled by employees based in New York City and Sweden, and the third-party licensing agency – Harry Fox Agency which is based in New York.

“These activities have nothing to do with California,” Spotify’s motion read.

Plaintiff David Lowery, the lead singer and guitarist for bands Cracker and Camper Van Beethoven, filed the lawsuit on Dec. 28, 2015 and accused Spotify of violating the mechanical rights of musicians by failing to obtain such licenses for certain songs Spotify streams to millions of users. These mechanical rights apply to musical compositions on tangible physical products such as CDs as well as digital downloads, according to the lawsuit.

Lowery brought forth charges against Spotify for its alleged knowing and willful infringement of copyright. The class action stated that Spotify publicly admitted that it fails to obtain licenses or pay royalties for some of the music it distributes. Lowery also alleged that Spotify even created a reserve fund of unpaid royalties to copyright owners, in display of “egregious and willful” copyright law violations.

“The existence of this fund reflects Spotify’s practice and pattern of copyright infringement, wherein Spotify reproduces and/or distributes the works without first obtaining appropriate authorization or license,” the Spotify class action lawsuit read.

The plaintiff seeks statutory damages for the alleged copyright infringement and unfair business practices, and such awards vary from $750 to $30,000 for each infringed work, plus up to $150,000 for willful infringement, according to the complaint.

Lowery seeks to establish a class of copyright holders estimated in the “hundreds of thousands” and accuses Spotify of unjustly enriching itself by at least $150 million. He claims Spotify conducts business with California residents through commercial transactions and contracts and is in violation of California’s business and professions code.

In response to Lowery’s allegations, Spotify stated in its motion to dismiss that Lowery’s case lacks evidence that company activities are “directed towards California in particular, as is required for specific jurisdiction.”

In support of their stance on the court lacking personal jurisdiction in California, Spotify cited an Illinois federal judge’s decision last month that accused Facebook Inc. of privacy violations for nonusers who had their biometric data collected through the company’s photo-tagging software. The judge ruled that Facebook didn’t intentionally direct activities toward Illinois residents, so the court lacked specific jurisdiction over the case.

Spotify asserts that the streaming content it provides is available throughout the U.S., like Facebook’s photo-tagging feature, and that the content available to California residents who use Spotify is the same as that available to users nationwide.

Lowery is represented by Sanford L. Michelman, Mona Z. Hanna, Melanie Natasha Howard, David C. Lee, and Ilse C. Scott of Michelman & Robinson LLP.

The Spotify Copyright Class Action Lawsuit is Lowery v. Spotify USA Inc., Case No. 2:15-cv-09929, in the U.S. District Court for the Central District of California.

UPDATE: May 2019, the Spotify songwriter copyright class action settlement is now open. Click here to file a claim.