Business

Peloton and NMPA Agree to Settle Copyright Infringement Lawsuit

Peloton bike.
Jeff Chiu/AP/Shutterstock

Peloton bike.

Peloton and The National Music Publishers' Association (NMPA), the trade association representing all American music publishers and their songwriting partners, announced today (Feb. 27) that they have reached an agreement to  “fully settled the litigation brought last year by 14 NMPA members.”

The $370 million lawsuit, originally filed by the publishers last March, alleged that Peloton -- which manufactures exercise bikes that stream instructor-led fitness classes via built-in touch screens -- had used more than 1,000 copyright musical compositions without obtaining needed licenses. In its April 30, 2019, counterclaim, Peloton accused the publishers of anti-competitive behavior by engaging in a “coordinated effort” to fix prices and alleged that the National Music Publishers Association had conspired to prevent it from striking deals with the individual companies. A judge though dismissed Peloton’s counterclaims in January.

Per the agreement reached, it was announced that  Peloton and the trade association entered into a joint collaboration agreement to “ work together to further optimize Peloton's music licensing systems and processes.”

In a statement, NMPA President & CEO David Israelite said, "We are pleased the music publishers and their songwriter partners in this case have reached a settlement with Peloton that compensates creators properly and sets forth the environment for a positive relationship going forward. Peloton is an innovative company, and we are impressed with the company's investment in technology and commitment to delivering a powerful, authentic music experience. We look forward to our ongoing collaboration to find solutions that will benefit all songwriters."

Additionally, Peloton's Head of Music Paul DeGooyer said in a statement announcing the settlement that , "Music is an important part of the Peloton experience, and we are very proud to have pioneered a new revenue stream for recording artists and songwriters. We're equally proud to partner with David and the NMPA to ensure that songwriters are, and continue to be, fairly compensated. With the NMPA's input, we are confident our proprietary, state-of-the-art music system will provide an even more dynamic fitness experience for our millions of members worldwide."