Judge Blocks Spotify's Motion for Early Ruling in Eminem Publisher Lawsuit Against Kobalt
A federal judge has denied Spotify's early motion for summary judgment against Kobalt in a legal battle over allegedly unpaid royalties for Eminem's music streams.
This development follows the court's earlier decision requiring Spotify CEO Daniel Ek to participate in a remote deposition lasting up to three hours.
The case began in August 2019 when Eight Mile Style, Eminem's publisher, sued Spotify for allegedly infringing on 243 of the rapper's compositions and failing to pay royalties. The publisher sought $36 million in damages plus advertising revenue and equity interest compensation.
Kobalt logo on orange
Spotify claimed it was licensed by Kobalt, Eight Mile's agent, to stream the works 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.
Judge Aleta A. Trauger acknowledged that while resolving the indemnification issue could expedite the case, Kobalt deserved time to develop its defense, particularly regarding expert discovery.
Key points of contention include:
- Spotify's awareness that Kobalt's 2016 agreement only covered its administered share
- Contract language regarding necessary payments and licenses
- Dispute over the definition of "Publisher Compositions" in the licensing agreement
Eminem wearing gray hoodie, close-up
Kobalt maintains it never had rights to license the compositions, while Spotify argues this is irrelevant since the agreement covered all administered compositions, regardless of licensing status.
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