Pandora accuses music group of 'unconstitutional' case

Pandora has asked a judge to dismiss a lawsuit from The Mechanical Licensing Collective (MLC) concerning streaming royalties. Pandora alleges the MLC is "abusing" its authority with an unconstitutional case, aiming to avoid paying substantial sums for rights it asserts are not required. The MLC initiated legal action two years ago, claiming Pandora misclassified its services to reduce royalty payments owed to songwriters and publishers.

The core of the dispute lies in the distinction between "interactive" platforms like Spotify and "noninteractive" services akin to traditional radio. While Pandora pays higher royalties for its premium tier with on-demand features, it has historically treated its radio-like free service as noninteractive. The MLC argues that features like "Sponsored Premium Access" sessions, allowing brief song plays for ad views, push Pandora Free into "interactive" status, thus demanding higher royalty rates.

Both parties are now seeking summary judgment. Pandora insists that even if the MLC has standing, its demand is incorrect, and that limited interactive features do not alter the service's fundamental nature. The MLC counters that Pandora's own admissions and the availability of features like song searches and unlimited skips prove Pandora's "unlawful underpayment." A jury trial is slated for June 30 should these motions not resolve the case.