Judge Blocks Spotify's Summary Judgement Motion Against Kobalt in Eminem Streaming Case
A federal judge has denied Spotify's early motion for summary judgment against Kobalt in a legal dispute over allegedly unpaid royalties for Eminem's music streams.
The case began in August 2019 when Eight Mile Style, Eminem's publisher, sued Spotify for allegedly infringing on 243 compositions and failing to pay royalties. Eight Mile Style sought $36 million in damages plus advertising revenue and equity interest compensation.
Spotify claimed it was properly licensed through Kobalt, Eight Mile's agent, and named Kobalt as a third-party defendant. Eight Mile later added the Harry Fox Agency as a defendant, alleging a "fraudulent scheme" to hide failure to obtain proper mechanical licenses.
Kobalt logo on orange
Judge Aleta A. Trauger acknowledged that while early resolution could expedite the case, Kobalt deserved time to develop its defense, particularly regarding expert discovery.
Key points of contention:
- Spotify allegedly knew Kobalt's 2016 agreement only covered its administered share of compositions
- The licensing contract stated no additional permissions were needed beyond public performance rights
- Both parties agreed to indemnify each other against third-party claims
- Kobalt argues it never had rights to license the compositions in question
- Spotify contends this is irrelevant as the agreement covered all "administered" compositions
The case continues with Spotify CEO Daniel Ek scheduled for a remote deposition lasting up to three hours.
Eminem wearing gray hoodie, close-up
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