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 case centers on Spotify's controversial reclassification of its main U.S. subscriptions as bundles, resulting in over $100 million in royalty savings for the platform.

Key Points of MLC's Motion:

• The MLC argues that Spotify Premium doesn't qualify as a bundle under law, particularly since audiobooks were available before the bundling classification
• Contests the court's finding that 15 hours of monthly audiobook access provides more than "token value" to subscribers
• Claims Spotify's previous certification of Premium as a standalone subscription contradicts its current bundle classification
• Requests permission to amend the complaint if reconsideration is denied

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

• The $9.99 price point used in bundling calculations is invalid
• Spotify's audiobook-exclusive package incorrectly combines books and music
• The pricing structure isn't made in "good faith" and doesn't reflect reasonable market value
• The inflation of the audiobook component artificially reduces music royalty payments

If granted leave to amend, the MLC plans to present additional evidence regarding Spotify's alleged royalty underpayments, even under the existing bundle formula. This ongoing legal battle could have significant implications for music industry royalty structures and streaming service bundling practices.

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