It’s no accident that the logo for Tony Brummel’s Victory Records is a tough old bulldog. Tony is one of the great record men and it’s also no accident that Victory is standing up to Spotify for stiffing its artists and writers. When you hear all the label bashing from the MMF and Spotify I want you to remember this.
So apparently what happened is that after the story broke in the Wall Street Journal that Spotify is stiffing writers (and likely artists) on a grand scale (i.e., what we all suspected to be true) is that Spotify thrust upon Victory what appears to have been some kind of settlement and release for nonpayment combined with a blanket go-forward mechanical license for Victory’s publishing catalog. A take it or leave it deal that Victory turned down according to the following quote in Digital Music News:
Late yesterday, Spotify sent over a document giving them mechanical clearance to use our music. We could not sign said document for a variety of reasons, most importantly, that it would put us in direct violation of our agreement with Audiam. Spotify knows we are in business with Audiam and were essentially asking us to breach/ignore that agreement….
Victory Records’ catalog of music was pulled from Spotify last night as a result of Spotify not properly paying publishing revenues due to Victory Records’ artists in blatant violation of US Copyright laws. Spotify also pulled down a very large number of albums that Victory is not the publisher for proving that their internal systems are inadequate.
We asked that our catalog not be pulled, that we would amicably work with Spotify, and they haphazardly removed our content regardless. 53,000,000 streams, as per Spotify’s statements, were identified with no publishing royalties being paid by Spotify.
This is what happens when you get between Daniel Ek and his IPO. Stay tuned….