A federal judge has temporarily halted Spotify's pursuit of damages from Kobalt in the ongoing litigation involving Eminem's publisher Eight Mile Style. The decision comes after Spotify's recent victory in a long-running royalties dispute.

Judge Aleta A. Trauger's order responds to Kobalt's request to reconsider the judgment or pause the damages payment pending appeal. The case originated over five years ago when Eight Mile Style filed an infringement complaint against Spotify, with Harry Fox Agency later added as a second defendant in 2020.

Key developments:

• Spotify added Kobalt as a third-party defendant in 2020, arguing they should be responsible for any due royalties and damages
• The judge partially approved Spotify's motion for summary judgment in August 2024
• The court validated Spotify's indemnification clause from their 2016 agreement with Kobalt
• Spotify filed a sealed motion seeking substantial attorney's fees

The central legal question focuses on whether Kobalt must indemnify Spotify for compositions where Kobalt lacked U.S. mechanical licensing authority but maintained other administrative rights, such as:

• Non-U.S. mechanical licensing
• Worldwide synch licensing
• License request acceptance

Judge Trauger determined it would serve justice to allow the liability claims to be appealed alongside other case issues. The court has ordered judgment on all claims except those favoring Spotify against Kobalt, setting the stage for the appeal process.

The case continues to highlight the complex relationship between streaming platforms, publishers, and licensing rights in the digital music era.

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