Pandora To Pay $90M In Settlement Fees After Royalties Lawsuit

Pandora-to-pay-90M-in-settlement-fees-after-royalties-lawsuit
Pandora will pay record labels a total of $90 million after a settlement was reached regarding a lawsuit over unpaid royalties for songs produced before 1972. Photo by Pandora/Facebook

WASHINGTON, Oct. 23 (UPI) — Internet radio company Pandora has reached a settlement agreement with major record labels over unpaid royalties for songs produced before 1972.

The online music platform will pay out $90 million dollars to the labels, ending a lawsuit first filed last year by the Recording Industry Association. Although a settlement has been made, Pandora has not officially licensed the songs. While new agreements with labels like Warner, Sony and Universal are negotiated, the website will continue playing the classic hits.

“Pandora is excited to have found resolution with these record labels,” CEO Brian McAndrews said in a statement. “Together we share a common objective to grow the music industry and support artists. We pursued this settlement in order to move the conversation forward and continue to foster a better, collaborative relationship with the labels.”

Pandora claimed music made before 1972 was in the public domain since it was not protected under U.S. copyright law. In 2013, SiriusXM said the same, but lost another lawsuit that cost them $210 million in settlement fees.

“Major settlements with SiriusXM and now Pandora means that an iconic generation of artists and the labels that supported them will be paid for the use of their creative works,” Recording Industry Association of America CEO Cary Sherman said.

“That is a significant milestone and a big win for the music community. We appreciate the collaborative and constructive approach to Pandora’s team in resolving this longstanding issue for artists and labels.”

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