{"id":9784,"date":"2026-02-06T18:56:51","date_gmt":"2026-02-06T18:56:51","guid":{"rendered":"https:\/\/www.billboard.com\/?post_type=billboard_pro_post&p=1236173792"},"modified":"2026-02-06T18:56:51","modified_gmt":"2026-02-06T18:56:51","slug":"pandora-says-mlc-lawsuit-over-streaming-royalties-must-end-clearly-unconstitutional","status":"publish","type":"post","link":"https:\/\/sarmiento24h.com\/?p=9784","title":{"rendered":"Pandora Says MLC Lawsuit Over Streaming Royalties Must End: \u2018Clearly Unconstitutional\u2019"},"content":{"rendered":"
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Pandora wants a judge to end a lawsuit filed by the Mechanical Licensing Collective over streaming royalties, accusing the group of \u201cabusing\u201d its position with an unconstitutional case. But the MLC says the streamer is just trying to ignore the reality of its \u201cunlawful underpayment.\u201d<\/p>\n

The MLC sued Pandora (a unit of SiriusXM) two years ago, claiming it had misclassified its services<\/a> to avoid paying the kind of higher royalties owed by \u201cinteractive\u201d platforms like Spotify. The case has now reached the make-or-break moment, where each side asks the judge to rule in their favor.<\/p>\n

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In a strongly-worded motion on Thursday, Pandora says the case is a \u201cgross overreach\u201d aimed at forcing the company to \u201cpay vast sums\u201d for rights that it \u201cdoes not need\u201d \u2013 all filed by a private entity that\u2019s \u201cexploiting\u201d and \u201cabusing\u201d its limited powers.<\/p>\n

\u201cThe brazen nature of the MLC\u2019s efforts here cannot be overstated,\u201d Pandora\u2019s lawyers write, asking the judge to end the case without a trial. \u201cAllowing a private, unaccountable, non-rightsholder entity like the MLC to serve as a roving enforcer of the Copyright Act, with no oversight or supervision from any entity of the federal government, is \u2018delegation in its most obnoxious form,\u2019 and clearly unconstitutional.\u201d<\/p>\n

MLC fired back in its own motion on Thursday, asking the judge to instead hold Pandora liable for its \u201cunlawful underpayment of royalties.\u201d It said Pandora was attacking the MLC\u2019s authority to distract from a \u201cmountain\u201d of evidence and \u201cinescapable\u201d conclusion that must pay up.<\/p>\n

\u201cPandora has poured resources into litigating a refusal to accept the obvious, ignoring its many admissions and instead offering semantic defenses and red herrings to obscure the undisputed truths,\u201d the group\u2019s lawyers write. \u201cThe MLC\u2026brings this motion to cut through the obfuscation and hold Pandora to the plain language of the statute and the simple reality of its own service.\u201d<\/p>\n

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MLC, a group created by the Music Modernization Act in 2018 to collect mechanical royalties from streaming services, filed its case against Pandora in February 2024, essentially claiming the company was using bookkeeping trickery to reduce its payments to songwriters and publishers.<\/p>\n

At the heart of the lawsuit was distinction between \u201cinteractive\u201d platforms like Spotify or Apple Music, which allow users to pick their songs on demand, and \u201cnoninteractive\u201d platforms like Pandora that provide an experience more like radio. It\u2019s a key dividing line, since interactive and noninteractive services pay very different royalties under different systems.<\/p>\n

Though Pandora pays such interactive royalties for its premium tier with on-demand functionality, it has long treated Pandora Free \u2014 the core radio-like product that fueled the company\u2019s rise in the late 2000s \u2014 as a noninteractive service, since it largely serves users a mix of songs based on their preferences.<\/p>\n

But in its lawsuit, the MLC argued Pandora Free had crossed the line into \u201cinteractive\u201d status by offering so-called \u201cSponsored Premium Access\u201d sessions, which allow users to briefly play specific songs in return for watching ads. As a result, the MLC argued that Pandora owed the same kind of royalties for Pandora Free as services like YouTube or Spotify pay: \u201cPandora provides even greater interactive access,\u201d MLC wrote at the time.<\/p>\n

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After two years of litigation, including a lengthy discovery process, both sides are now filing their motions for \u201csummary judgment,\u201d asking the judge to rule on the case without the need for a jury trial.<\/p>\n

In its filing, Pandora argues that even if MLC has the authority to sue, the group\u2019s demand for more royalties was \u201cplainly and unmistakably wrong.\u201d It says the law is clear: That companies offering both radio and on-demand functions should only pay higher royalties for the latter, and that its \u201cSponsored\u201d sessions do not change the calculus.<\/p>\n

\u201cThe MLC seeks to use civil litigation to overturn two decades of industry practice and force upon Pandora a novel and incorrect interpretation of the Copyright Act,\u201d the company writes. \u201cThese sessions, which comprise a miniscule percentage of listening by free Pandora users, do not come close to transforming Pandora\u2019s internet radio service into the statutory equivalent of an on-demand streaming service like Spotify or Apple Music.\u201d<\/p>\n

In its own motion, MLC says Pandora\u2019s free users can search for specific songs and \u201chave access to unlimited skips and replays.\u201d And it says the streamer has bragged about the disputed features, including by telling users they can \u201csearch and play your favorite songs on-demand for free.\u201d<\/p>\n

\u201cPandora intentionally developed, marketed and provided each of these features to Pandora Free users, and then boasted of them to its investors,\u201d MLC writes. \u201cPandora\u2019s defense in this action thus asks the Court to ignore not just the reality of the product\u2019s operation, but also years of Pandora\u2019s own representations about its service.\u201d<\/p>\n

If the judge denies the motions, a jury trial is scheduled for June 30. A spokesperson for Pandora did not immediately return a request for comment. In a statement, MLC said it had \u201crepeatedly\u201d tried to resolve the dispute without litigation, but that Pandora had \u201crefused\u201d to address the problem: \u201cWe have now moved for summary judgment because the undisputed evidence proves our claims.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

Trending on Billboard Pandora wants a judge...<\/p>\n","protected":false},"author":1,"featured_media":9785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[55],"tags":[],"class_list":["post-9784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entretenimiento"],"yoast_head":"\nPandora Says MLC Lawsuit Over Streaming Royalties Must End: \u2018Clearly Unconstitutional\u2019 - 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