Wixen's $1.6 Billion Spotify Lawsuit: What You Need to Know

On Wednesday, Spotify cemented plans for the world's biggest streaming service to go public on the New York Stock Exchange. However, the months-in-the-works announcement was marred Tuesday by the arrival of a $1.6 billion lawsuit filed against Spotify by Wixen Music Publishing, which represents the works of artists ranging from Neil Young and Tom Petty to the Black Keys and Janis Joplin.

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The massive lawsuit – the latest in a string of legal actions Spotify has faced in the past year – seeks to remunerate songwriters and rights holders, under-compensated as the music industry shifts to streaming, before legislation is passed in Washington, D.C. that would hinder future reimbursement.

Here is everything you need to know about the potentially industry-changing lawsuit, from what precipitated it to what it could mean for the future of streaming.

What is Wixen Music Publishing?
Founded by Randall Wixen in 1978, the California-based publishing company licenses the catalogs of more than 2,000 artists, from rock legends like Tom Petty, Neil Young, Jefferson Airplane and the Beach Boys to alternative rockers like Black Keys and Rage Against the Machine to hip-hop acts like Missy Elliott. By Wixen's estimates, their stable of artists represents between one to five percent of the music streamed on Spotify.

From the beginning, the emphasis has always been on providing ultra-high-quality administration with extra consideration given towards royalty analysis, while both protecting and exploiting our clients’ copyrights," Wixen tells clients on its website. "We don't try to function as bankers and collateralize your earnings with advances. We function simply as copyright administrators. You keep and control your copyrights, we keep our money, and you get to retain more of yours."

Wixen Music Publishing also prides itself as "tough negotiators," which likely facilitated their $1.6 billion lawsuit, as the company was unsatisfied with the result of past class action lawsuits as well as forthcoming legislation.

"Understanding the value of music and pricing songs accordingly is very important to maintain its worth and not erode its earning power," Wixen promises clients. "Some may call our pricing model aggressive; our clients see it as watching out for their interests and getting them the best deal for their song."