The MLC brought a legal action against Pandora Media, LLC (Pandora) to recover blanket royalties due under the compulsory mechanical blanket license that Pandora obtained to enable its consumer music streaming platform.
Why did The MLC bring this action?
Pandora has failed to report and pay all of the mechanical royalties it owes in connection with the operation of its ad-supported interactive music streaming offering, marketed under the name “Pandora Free.” The MLC has repeatedly raised this license compliance issue with Pandora and asked it to correct its reporting, but it has refused to do so. We are taking legal action to ensure that our Members receive all the mechanical royalties they are due in connection with the use of their songs by Pandora.
Why are legal efforts important?
Pandora operates one of the largest music streaming services in the U.S. As the sole entity authorized to collect royalties from blanket licensees and use legal efforts to enforce the blanket license terms, The MLC takes seriously its legal responsibility to take action on behalf of our Members when we believe usage reporting and royalty payments are significantly incorrect.
What happens next?
The lawsuit has been filed in the United States District Court located in Nashville. Pandora will have an opportunity to respond, after which the court will set and manage a case schedule for the proceeding.
When the matter has been resolved, we will provide Members with an explanation of the outcome and details on any royalty adjustments that may occur.