Labels Settle Internet Archive Lawsuit, UK Creators Demand Copyright Protections, and Sonos Challenges SoundExchange Case
How The Music Business Works - Issue #29
September 18, 2025
Welcome back to How The Music Business Works!
This week’s stories highlight key shifts across copyright, licensing, and market growth.
A long-running lawsuit over the Internet Archive’s “Great 78 Project” has been quietly settled, while UK creators are demanding stronger protections against AI’s use of copyrighted works.
Sonos is pushing to dismiss SoundExchange’s $3.3 million royalty suit after a pivotal SiriusXM ruling, and Napster’s decade-old class action has ended with legal fees slashed to a fraction of the original request.
Meanwhile, Spain stands out in Europe with double-digit music market growth, driven by streaming subscriptions and surging vinyl sales.
On to the news…
Labels Settle Copyright Lawsuit Against Internet Archive Over Streaming of Vintage Vinyl Records
The Internet Archive has reached a confidential settlement with music labels, ending a two-year lawsuit over its “Great 78 Project,” which digitized and streamed vintage vinyl recordings. The case, filed in 2023, accused the Archive of copyright infringement for making thousands of works from the 1890s–1950s available online. The Archive defended the initiative as fair use, aiming to preserve cultural heritage. Both sides notified a California federal court that they will finalize the settlement and dismiss the case within 45 days, closing one of the most closely watched copyright disputes in the digital preservation space.
UK Creators Demand Prime Minister Recognize Creators’ Human Rights and Protect Copyright
Over 70 leading UK artists and creative organizations, including Mick Jagger, Paul McCartney, Kate Bush, and Elton John, have signed an open letter urging the government to protect copyright against exploitation by AI companies. The signatories accuse officials of failing to uphold international human rights standards and blocking stronger enforcement mechanisms during the passage of the Data (Use and Access) Act. They warn that neglecting copyright protections risks handing control of the UK’s creative economy to overseas tech giants. The call comes as the government prepares a tech trade deal with the U.S., where AI is expected to play a central role.
Sonos Wants Courts to Dismiss SoundExchange Lawsuit After Controversial Sirius Ruling
Sonos is seeking dismissal of a lawsuit filed by SoundExchange over unpaid royalties from its Sonos Radio service, arguing that a recent New York court ruling undermines the society’s authority to sue. SoundExchange claims $3.3 million is owed from when Napster operated Sonos Radio, but Sonos contends any payment obligations lie solely with Napster. Pointing to last month’s decision in the SiriusXM case, where a judge ruled SoundExchange lacks the legal power to bring royalty disputes to courtSonos says the same reasoning applies here. It has asked for the case to be dismissed with prejudice or paused pending the Sirius appeal.
Federal Judge Slashes Legal Fees in Napster Class Action Settlement
A decade-long copyright dispute against Napster has concluded with a drastic cut to legal fees. After an appellate court rejected a $1.7 million award in 2023, Judge Jeffrey White has now ordered plaintiffs’ counsel to receive just $86,022 in fees plus $13,162 in costs (about $99,000 total.) The original class action, filed in 2015, settled in 2019 with small payouts of $35 per qualifying work, ultimately distributing only $52,841 to claimants. The court ruled the lawyers’ fee request (at one point over $6 million) were disproportionate to the settlement’s value, noting the case involved little discovery and was largely resolved through settlement talks.
GloRilla Seeks Dismissal in ‘All Naturale, No BBL’ Copyright Infringement BattleSpanish Recorded Music Industry Bucks the Global Trend with 10.4% H1 Growth
Spain’s recorded music market grew 10.4% year-over-year in H1 2025, reaching €162.6 million in wholesale revenue, according to Promusicae. The growth outpaced other major markets, where gains remained in the low single digits. Streaming made up 88.6% of total revenue, led by paid subscriptions, which surged 18.9% to €103.7 million. Ad-supported streaming, however, fell 15.4%, reflecting weaker ad rates. Physical sales also surprised with a 14.8% rise, fueled by vinyl’s 25.6% jump to €12 million. Spain’s performance highlights the resilience of its market, especially as the U.S., Germany, and France reported much slower growth.