Spotify AB removed from its music service in the U.S. thousands of songs by bands signed to independent record label Victory Records amid a standoff over publishing royalties, the two companies said on Monday.
The dispute centers on publishing royalties that Victory’s sister company, Another Victory Music Publishing, says it is owed by the subscription music-streaming service. Based on an audit by a small technology company called Audiam Inc., Another Victory says that Spotify hasn’t paid publishing royalties for the compositions underlying thousands of recordings that U.S.-based Spotify users have listened to millions of times over the past several years.
The label’s catalog remains available in other countries, a Spotify spokesman said.
“Spotify has pulled down the Victory Records sound recordings in response to us asking for them to pay for the 53 million streams that have not yet been paid on,” Audiam Chief Executive Jeff Price said on Monday night. The songs taken down include several hits by Florida pop-punk band A Day to Remember and other popular tunes.
A Spotify spokesman said the streaming service took action because Another Victory and Audiam had not provided sufficient data to substantiate their royalty claims.