In 2019, Spotify was accused of streaming hundreds of Eminem’s songs without obtaining the proper licenses by the rapper’s publisher, Eight Mile Style. This week, it has been revealed that a federal judge in Tennessee sided with Spotify, stating that Eight Mile Style manufactured the accusations for its own financial gain.
Eight Mile Style brought the claim against Spotify for a value of around £30 million. They claimed that billions of hours’ worth of Eminem’s music had been streamed across 243 songs without the required license, and also alleged that Spotify had “acted deceptively” by acting as if it did. Eight Mile Style has no formal affiliation with Eminem and it was reported that Eminem had no knowledge of the claim until after it was issued.
In a Summary Judgment, Judge Aleta A Trauger concluded that while Spotify did not have the correct licenses to be streaming Eminem’s music, they were not liable for any lost royalties for several reasons. One of the most notable was that Eight Mile Style had not sent a single cease and desist letter to Spotify, leading the Judge to state that there were opportunities to set things right, but they chose not to because “being the victim of infringement pays better than being an ordinary licensor.”
Another factor in the case was that Spotify believed Kobalt Music Publishing to be the rightsholder, and had therefore been making royalty payments to them, with sporadic payments being made to Eight Mile Style from time to time. While Kobalt was authorised to collect royalty payments on behalf of Eminem, it had not been authorised to license the songs in Canada and the US since the rights had been transferred to Bridgeport Music, who are affiliated with Eight Mile Style, in 2009. The Judge noted that no third parties were formally notified of the change in ownership, making who was responsible for licensing genuinely confusing. This factor ultimately strengthened Spotify’s position.
This case demonstrates the increasingly complicated relationship between IP rights, licensing, and streaming companies.
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