Three major record labels say oldie but goodies played on digital music providers will come at a hefty price.
Sony, Universal, Warner Music, ABKCO, and the RIAA filed a lawsuit yesterday against Internet streaming service Pandora. The lawsuit alleges Pandora violated copyright laws by using recordings created before 1972, according to The New York Times. Last September, the labels filed a similar suit against streaming music provider Sirius XM.
The suit calls attention to an ongoing battle against streaming services by record labels for millions of dollars in royalties that go unpaid since songs prior to 1972 are not protected by federal copyright laws. The labels are asking a judge to consider having Pandora ask for permission and pay fees for playing the older songs. The labels say, “this case presents a classic attempt by Pandora to reap where it has not sown.” Representatives for Pandora are confident a quick resolution will be in their favor.
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Pandora and Sirius XM are the two biggest streaming companies, accounting for a majority of $656 million in performance royalties collected by SoundExchange last year. The company’s CEO and President Michael Huppe said that record labels and artists could have pulled in $60 million in royalties last year.
Pandora’s 70 million subscribers may not hear songs from The Beatles, Hank Williams, Aretha Franklin, Bob Dylan, James Brown and The Rolling Stones until the case is resolved.