Spotify, a digital music-streaming service, and Sosa Entertainment, a music company, have reportedly settled a lawsuit. This legal case was started in 2019, when the Florida-based company had sued Spotify, seeking nearly $1 billion in damages and alleging for a series of offenses.
People with knowledge of the matter have reported that both Sosa and Spotify have agreed to drop the claims against each other, without involving any financial penalty. Spotify and Sosa’s sister company, Pro Music Rights, have agreed that fraudulent streaming has impacted legitimate songwriters, artists, publishers, and composers, and shared a mutual commitment to fight against these fraudulent streaming practices.
In 2019, Sosa had filed a lawsuit alleging that Spotify was manually blanket-banning the tracks associated with 550 million streams. The company also accused the music-streaming service of deliberately and maliciously blacklisting the plaintiffs and Jake P. Noch, the founder of Sosa, along with artists, composers, and writers from its platform. The Florida-based company has reportedly cited that the track removal process started in May 2017 and claimed that all the tracks were removed from the service without giving any advance notice or informing the reasons behind the removal.
However, in May 2020, Spotify countersued Sosa by directing many serious allegations against Noch, Sosa’s owner. In the countersuit, the music streaming service had alleged that Noch was directing 3rd parties to create millions of fake Spotify accounts as well as deploying these accounts to stream his and the music company’s content several times a day.
In response to this, Sosa requested the federal judge to dismiss the countersuit, calling Spotify’s action legally deficient and procedurally defective. In January, the U.S. District Court for the Fort Myers Division, the Middle District of Florida, filed a document revealing the settlement negotiations between Spotify and Noch.