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

The dispute centers on Spotify's decision to reclassify its main U.S. subscriptions as bundles, resulting in over $100 million in royalty savings for the platform. The MLC's key arguments include:

1. Spotify Premium doesn't qualify as a bundle under law, especially since audiobooks were available before the bundling classification
2. The 15 hours of monthly audiobook access provides only "token value" to subscribers
3. Spotify's previous certification of Premium as a standalone subscription contradicts its current bundle classification

The MLC also challenges Spotify's royalty calculations, arguing that:

• The $9.99 audiobook-only tier price point used in bundling calculations is invalid
• The pricing isn't made in "good faith" and doesn't reflect reasonable market value
• Spotify's inflation of the audiobook component artificially reduces music royalties

If the court doesn't reconsider its dismissal, the MLC requests permission to amend its complaint to include additional evidence about Spotify's prior reporting practices and alleged royalty underpayments.

The case number is 1:24-cv-03809, and its outcome could significantly impact how streaming services structure their bundled offerings and calculate royalty payments in the future.

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