Spotify has defended its recent decision to appeal royalty rates set by the Copyright Royalty Board, calling into question "significant flaws" in how they were determined. In a blog post targeting users of its Spotify for Artists service, the company sought to give music creators an overview of why the decision was made and to dispel any notion that it was "suing songwriters," as some headlines suggested.
"Does Spotify think songwriters deserve to be paid more?" the post asks. "Yes -- this is important to songwriters and it's important to Spotify. The industry needs to continue evolving to ensure that the people who create the music we all love -- artists and songwriters -- can earn a living. The question is how best to achieve that goal."
On March 7, Spotify, along with Google, Pandora and Amazon, took the unprecedented step to file notices of appeal to the CRB's rate determinations, finalized in January, boosting digital services' payments to songwriters and publishers by 44 percent over a four-year term. The new mechanical statutory rates cover 2018 to 2022 and include a headline rate increase from 10.5 percent of revenue to 15.1 percent of revenue.