Daivd Lowery v Spotify.docx

Daivd Lowery v Spotify.docx - 1 David Lowery v Spotify USA...

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1 David Lowery v Spotify USA Inc. a Delaware corporation MBA606A BUSINESS LAW SECTION A JACK NEVEAUX, Esq., Associate Professor Khoa Pham 04/18/2016
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2 David Lowery is the leader of bands called Cracker and Camper Van Beethoven, and he has been in the music industry for decades. Just like other musicians, he is a song writer and also a producer, in fact he is the author or co-author of more than 150 songs for his popular groups Cracker and Camper Van Beethoven. Not only David and his group was famous during 1980s and ‘90s, but also he has become a celebrity among musicians due to his voice about artists’ decreasing paychecks and other impacts related to Silicon Valley over copyright, economics and public disclosure. (Sisario, 2013) Spotify was founded in Sweden which is currently headquartered in England. It’s an interactive commercial music streaming service through internet which allows customers to customize their song playlists. Just like other services such as Apples iTunes, it allows customers to download to any storage devices that can be playable after they pay its fees. Spotify also allows customers to listen its songs free, but there are disadvantages which are ads interruption, lower-quality audio, partially-function to customize play lists, limited-skip function, and unable to play any songs (Pullen, 2015). In order to have millions of songs to provide to customers, Spotify has partnered with almost all major music labels and obtained its mechanical rights legally from artists. Mechanical rights refer to “a copyright holder’s control over the ability to reproduce a musical work.” In fact, according to article “20 Million reasons to Say Thanks” Spotify paid “ more than $3 billion USD in royalties , including more than $300 million in the first three months of 2015 alone . That’s good for music, good for music fans … and good for music makers.” This is where the issues which David Lowery claimed that Spotify has been using his and other songwriters’ compositions without full compensation. In fact, not only Lowery but also other artists and their firms such as that represent for them such as Audiam (a company that scours streaming services
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3 to collect royalties for songwriters like Bob Dylan and Metallica as well as some independent publishers), stated that Spotify barely pay enough for works.This is surely a serious lawsuit that can have strong impacts on Spotify and other streaming service companies related to their business’s policies, because the penalty can go up to $150 million (Levine. 2016). Consequently, Lowery filed his lawsuit in United States District Court in Los Angeles as a class-action, argued that Spotify has failed to obtain its mechanical rights for a lot of songs that it used to distribute and reproduce to its customers. In response, Jonathan Prince-a spokesman for Spotify stated that “We are committed to paying songwriters and publishers every penny.
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