A federal judge has temporarily halted Spotify's pursuit of damages from Kobalt in the ongoing Eminem royalties litigation. The pause follows Spotify's recent victory against Eight Mile Style, Eminem's publisher.

Judge Aleta A. Trauger's order responds to Kobalt's request for reconsideration or a pause on damages pending appeal. The case stems from a 2019 infringement complaint initially filed against Spotify, with Harry Fox Agency later added as a second defendant in 2020.

Key developments:

• Spotify added Kobalt as a third-party defendant in 2020, arguing they should be responsible for any royalties and damages
• The judge partially granted Spotify's motion for summary judgment in August 2024
• The court validated Spotify's indemnification clause from their 2016 agreement with Kobalt
• Spotify filed a sealed motion seeking substantial attorney's fees

The central legal question now focuses on whether Kobalt must indemnify Spotify for compositions where Kobalt lacked U.S. mechanical licensing authority but maintained other administrative rights.

Judge Trauger has ordered judgment to be entered on all claims except those favoring Spotify against Kobalt, allowing for appeal proceedings to move forward. This decision effectively puts Spotify's damages pursuit on hold while the appeals process unfolds.

The case highlights ongoing challenges in music licensing and streaming rights management, particularly regarding mechanical licensing authority and international rights administration.

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