Home > Uncategorized > @cmu Nails it on @davidclowery’s letter to NY AG on Spotify Investigation

@cmu Nails it on @davidclowery’s letter to NY AG on Spotify Investigation

November 10, 2015

As MTP readers will know, David Lowery posted a letter to New York’s Attorney General that has been getting quite a bit of coverage.  One of the more insightful passages is this one by Chris Cooke writing in Complete Music Update:

Some music publishers acknowledge that weakness and forgive the digital services to an extent, but others argue that – even if the music industry is to blame for some of the inefficiencies – that doesn’t alter the digital services’ obligations to ensure royalties are paid.

This insight may come as an epiphany to digital services.  Like Paul on the road to Damascus, they may realize David’s essential point regarding the unknown monies in the streaming services black box (estimated to be at least $25 million at Spotify alone by some):

I don’t know of any legal basis for a secret “escrow” with an unknown songwriter accrued at a royalty rate the songwriter did not agree to because they were not asked and for which there is no license.

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