Pandora Announces It Has Paid $90 Million To Settle Recordings Lawsuit

Internet radio company, Pandora, has agreed to pay the US major record labels, Sony Music, Capitol Records, Universal Music, Warner Music and ABKC, $90 million over streaming of the pre-1972 sound recordings. The major labels filed the lawsuit because the sound recordings were not protected under the federal copyright law until February 15, 1972, and thus Pandora had not been paying the labels for those streams. As a part of the settlement, Pandora had to pay $90 million to the labels and renegotiate a new deal concerning the pre-1972 songs before the end of 2016.

The two parties continue to debate the amount Pandora should pay for each song. The settlement is the second biggest payment that will go to the Recording Industry Association of America, which has already won a $210 million settlement with SiriusXM satellite radio over the same issue.

In a statement, the Recording Industry Association of America (RIAA)’s Chairman and CEO Cary Sherman called the settlement “a significant milestone and a big win for the music community. We appreciate the collaborative and constructive approach of Pandora’s team in resolving this longstanding issue for artists and labels.”

Pandora CEO, Brian McAndrews, said in a statement, “Pandora is excited to have found resolution with these record labels. 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.”