The Mechanical Licensing Collective (MLC) has filed a motion requesting a federal court to reconsider its January dismissal of a lawsuit against Spotify's bundling practices.

The dispute centers on Spotify's reclassification of its main U.S. subscriptions as bundles, a move that has reportedly saved the company over $100 million in royalty payments. The MLC's key arguments include:

1. Spotify Premium doesn't qualify as a bundle under legal definitions
2. The timing of the bundling classification is questionable
3. Audiobooks provide only "token value" to subscribers

The MLC contends that Spotify's previous certification of Premium as a standalone subscription offering contradicts its current bundle classification. They argue that the 15 hours of monthly audiobook access doesn't constitute significant value to justify bundle status.

If the court maintains its dismissal, the MLC seeks permission to amend its complaint to address:

• Spotify's alleged royalty underpayments under the bundle formula
• The questionable $9.99 price point used in bundling calculations
• Claims that Spotify's audiobook-exclusive package improperly includes music content

The MLC argues that Spotify's pricing strategy artificially inflates the audiobook component's value, resulting in reduced music royalty payments. They seek to demonstrate that the current pricing structure is neither made in good faith nor reflects reasonable market value.

The case number referenced is 1:24-cv-03809.

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