Spotify, the global music streaming giant, faces an imminent jury trial as its legal battle with the Mechanical Licensing Collective (MLC) intensifies in the Southern District of New York. The dispute, centered on allegations that Spotify employed controversial pricing and payment tactics affecting songwriter royalties, has escalated following Judge Analisa Torres‘ decision to reopen the case after an initial dismissal.
The MLC’s amended complaint, granted by the court in late 2025, accuses Spotify of exploiting licensing loopholes through “bundling” practices that allegedly reduced payments to songwriters. These allegations come amid Spotify’s ongoing efforts to establish direct licensing agreements with major publishers like BMG, which many industry observers view as an attempt to create more equitable royalty models outside the contentious framework currently under litigation.
Industry insiders view Spotify’s direct licensing pursuits as a strategic pivot away from the royalty structure currently under legal scrutiny.
Court documents reveal that Judge Torres has established strict deadlines for the amended complaints and subsequent motions, signaling the court’s intention to move forward with the jury trial. The court has set October 2, 2025 as the deadline for MLC to file its amended complaint. The case management conferences scheduled in the coming weeks will determine the final framework for what promises to be a closely watched legal showdown.
At stake are potentially significant financial liabilities for Spotify if found to have underpaid royalties, as well as precedent-setting implications for how streaming platforms compensate songwriters and publishers. Music industry stakeholders are monitoring the case with particular interest, recognizing its potential to reshape digital music licensing practices across the sector.
The legal conflict exemplifies the broader tension between technology platforms and creative rights organizations as they navigate the complex intersection of digital innovation and copyright protection.
While Spotify has achieved partial success in earlier motions, suggesting contested legal interpretations remain at the heart of the dispute, the upcoming jury trial represents a critical juncture in determining whether streaming platforms must adjust their royalty calculations to guarantee fair compensation for musical creators in the digital age. This case highlights the increasing importance of streaming royalties as a critical income stream for musicians seeking to maximize their earnings in today’s digital landscape. The MLC, established through the Music Modernization Act, serves as a nonprofit responsible for administering blanket mechanical licensing in the United States, ensuring songwriters receive appropriate royalties from digital services.
The Court’s March 11, 2025 ruling gave MLC precisely 21 days to file a motion for leave to amend their complaint, particularly focusing on allegations regarding Spotify’s Audiobooks Access pricing.
