NASHVILLE, TN (CelebrityAccess) — The Mechanical Licensing Collective (The MLC) announced that it is taking legal action against the SiriusXM-affiliated music streaming platform Pandora over what it alleges are unpaid royalties and late fees.
According to the MLC, the lawsuit stems from their mandated role of the collection and distribution of royalties under the compulsory mechanical blanket license for music streaming.
The suit, filed in a federal court in Nashville, alleges that Pandora underreported and underpaid mechanical royalties for music streamed as part of its Pandora Free, a ‘freemium’ ad-supported option.
According to the MLC, Pandora has only reported a portion of the streaming activity from Pandora Free accounts during a period between 2018-2022 when royalty rates and terms for the blanket license created by the Music Modernization Act were still being set.
The MLC claims that when the rate was finally set in August 2023, Pandora failed to report retroactively-adjusted usage during a six-month grace period that ended on February 9th.
Through their suit, the MLC is seeking compensatory damages and late fees along with attorney’s fees. They are also seeking injunctive relief preventing Pandora from continuing the alleged underreporting.
A rep for Pandora did not immediately respond to a request for comment.
