Pandora Media Inc. said it would recompense $90 million to reconcile a court case against the five record labels that charged the online music streaming service of cheating them out of royalties on pre-1972 soundtrack.
The labels include Sony Music Entertainment, UMG Recordings, Warner Music Group, Capitol Records and ABKCO Music & Records. No other conditions of agreement has been released by these labels together with Pandora.
The bitter disagreement between the music industry and broadcasters has been downsized because of the deal.
Federal copyright regulation does not involve those songs and the industry has been filing lawsuits in an attempt to expand its royalty rights.
Similar case against Sirius XM Holdings Inc, a satellite radio provider has been also settled and was paid $210 million in June.
In April 2014 the record companies sued Pandora in a New York state court in Manhattan. It demanded Pandora to end its "massive and continuing an unauthorized commercial exploitation of ldl.
Included in the complaint are the songs from the Beatles, the Rolling Stones, the Grateful Dead, Bob Dylan and Elvis Presley.
Pandora's chief executive officer, Brian McAndrews, told in a statement, "We pursued this settlement in order to move the conversation forward and continue to promote a better, collaborative relationship with the each labels and Pandora. Recording Industry Association of America Chairman Cary Sherman called the settlement "a significant milestone and a big win for the music community."
Pandora is also facing a lawful challenge over pre-1972 songs brought by members of the 1960s band the Turtles, known for the hit "Happy Together." That case is currently pending at the 9th U.S. Circuit Court of Appeals.
Capitol and UMG are part of Vivendi SA (VIV.PA), and Sony Music is part of Sony Corp
