What is the main accusation Pandora makes against The MLC in the royalty lawsuit?

Pandora accuses The Mechanical Licensing Collective (MLC) of abusing its position and filing an unconstitutional case to force the company to pay substantial sums for rights it does not need.

Why is The MLC suing Pandora over streaming royalties?

The MLC claims Pandora has unlawfully underpaid royalties by misclassifying its services, specifically arguing that features on Pandora Free push it into 'interactive' status, requiring higher royalty rates.

When is the potential jury trial scheduled for the Pandora royalty lawsuit?

A jury trial is scheduled for June 30 if the current summary judgment motions do not resolve the dispute between Pandora and The MLC.

Home / Business and Economy / Pandora accuses music group of 'unconstitutional' case

Pandora accuses music group of 'unconstitutional' case

6 Feb

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Summary

Pandora accuses the MLC of abusing its position with an unconstitutional lawsuit.
The MLC claims Pandora unlawfully underpaid royalties for its streaming services.
A jury trial is scheduled for June 30 if summary judgment motions fail.

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.