Music streaming service Spotify has filed confidentially with US regulators for an initial public offering and is targeting a direct listing in the first half of 2018 that would allow some longtime investors to cash out, a source familiar with the matter said on Wednesday.
Spotify's Chief Content Officer, Stefan Blom, is leaving the streaming company in the coming weeks - amid the firm's attempt to list on the New York Stock Exchange.
Spotify filed court papers on Friday that questioned whether Wixen's clients had authorized the company to take that action, claiming that it had given its clients only a brief opt-out period before their names would be included in the suit. Some of these songs are owned by Wixen via copyright.
Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was "ill-equipped to obtain all the necessary mechanical licenses".
Spotify has yet to comment on the issue. Wixen is the licensee of songs from popular artists like Missy Elliott, Janis Joplin, Tom Petty, and Fleetwood Mac's Stevie Nicks.
On-demand streaming services led by Spotify are quickly replacing downloads on platforms such as iTunes, which shook up the music business a generation ago.
Spotify was sued by Wixen Music Publishing Inc last week for allegedly using thousands of songs without a license and compensation to the music publisher.
This was also not the first time Spotify has been involved in a multi-million dollar lawsuit and settlement case. The settlement has yet to be finalized; if it goes through, the $43.4 million will go into a fund to compensate rights holders for past infringement.