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Spotify has set aside $30 million (£20.7 million) to pay unpaid royalties.
The streaming service reached an agreement with the National Music Publishers’ Association (NMPA) over songs that hadn’t received payment because Spotify hadn’t identified their publishers, reports Billboard.
Spotify has faced several multi-million dollar lawsuits over this issue so it is hoped a new settlement process will put cases like this to bed.
Jonathan Prince, of Spotify, said: “As we have said many times, we have always been committed to paying songwriters and publishers every penny.
“We appreciate the hard work of everyone at the NMPA to secure this agreement and we look forward to further collaboration with them as we build a comprehensive publishing administration system.”
The settlement process will start next month with a three-month opt in process where NMPA members can apply for a share of the $30 million by claiming and proving ownership of a song.
It covers all music on Spotify since its launch and until June 30 next year.
NMPA president and CEO David Israelite said: “NMPA’s goal has always been to ensure publishers and songwriters receive the money they deserve.
“I am thrilled that through this agreement both independent and major publishers and songwriters will be able to get what is owed to them. We must continue to push digital services to properly pay for the musical works that fuel their businesses and after much work together, we have found a way for Spotify to quickly get royalties to the right people. I look forward to all NMPA members being paid what they are owed, and I am excited about the creation of a better process moving forward.”
