In a landmark ruling, Spotify has won its legal battle against Eight Mile Style, the publisher of 242 Eminem tracks, in a complex mechanical licensing lawsuit.

The case, initiated in August 2019, centered on allegations that Spotify streamed Eminem's songs without proper mechanical licenses. Notably, Eminem himself was unaware of the lawsuit when it was filed.

Key Points of the Case:

• Eight Mile Style claimed Spotify lacked proper licensing for streaming
• The publisher alleged improper royalty payments despite "billions" of streams
• Spotify defended itself by citing an agreement with Kobalt Music Group
• The court found Spotify did lack proper licensing, but ruled in its favor

Judge Aleta A. Trauger's ruling revealed that Eight Mile Style had engaged in "scheming" to maximize financial gain by deliberately obscuring ownership details. The complexity arose from a 2009 rights transfer from Kobalt to Bridgeport, which wasn't properly communicated to involved parties.

The Verdict's Impact:

• Kobalt must pay reasonable attorney's fees and expenses
• Spotify avoided copyright infringement damages
• The case highlighted the music industry's complex licensing structure
• The ruling sets a precedent for future mechanical licensing disputes

The court acknowledged the music industry's complicated nature, noting how streaming services often license catalogs without full knowledge of their contents. This case underscores the need for clearer communication and documentation in music rights management.

The ruling also touched on the Music Modernization Act (MMA), though the judge declined to address its constitutionality. The case's resolution marks a significant moment in streaming service liability and music publishing rights management.

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