A federal judge has denied Spotify's early motion for summary judgment against Kobalt in an ongoing legal dispute over allegedly unpaid royalties for Eminem's music streams.

The case stems from an August 2019 lawsuit where Eminem's publisher, Eight Mile Style, accused Spotify of infringing on 243 of the rapper's compositions and failing to pay royalties. Eight Mile Style seeks $36 million in damages, plus advertising revenue and equity interest compensation.

Spotify claims the infringement allegations lack merit, stating it was licensed by Kobalt, Eight Mile's agent, to stream the works. This led Spotify to name Kobalt as a third-party defendant. Eight Mile later added the Harry Fox Agency as a defendant, alleging a "fraudulent scheme" to hide failures in obtaining mechanical licenses.

Judge Aleta A. Trauger denied Spotify's motion, allowing Kobalt to further develop its case, particularly noting the absence of expert discovery. The decision hinges on complex contractual relationships:

• A 2016 agreement between Spotify and Kobalt indicated only Kobalt's administered share was licensed
• The contract stated no additional permissions were needed beyond public performance rights and sound recording rights
• Both parties agreed to indemnify each other against third-party claims
• Kobalt argues it never had rights to license the compositions, while Spotify contends this is irrelevant as long as Kobalt "administered" them

The case continues to develop, with Spotify CEO Daniel Ek scheduled for a remote deposition lasting up to three hours.

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