The Mechanical Licensing Collective (MLC) has filed a motion asking a federal court to reconsider its January dismissal of a lawsuit against Spotify's bundling practices.

The lawsuit centers on Spotify's decision to reclassify its main U.S. subscriptions as bundles, resulting in over $100 million in royalty savings for the streaming platform. The MLC's key arguments include:

1. Spotify Premium doesn't qualify as a bundle under law
2. The timing of the bundling classification is questionable
3. Audiobooks provide only "token value" to subscribers

The MLC contends that Spotify's previous certification of Premium as a standalone subscription offering contradicts its current bundle classification. They argue that the 15 hours of monthly audiobook access doesn't justify bundle status.

If reconsideration is denied, the MLC requests permission to amend their complaint to address:

• Spotify's alleged royalty underpayments under the bundle formula
• The validity of the $9.99 price point used in bundling calculations
• Claims that Spotify's audiobook component pricing artificially reduces music royalty payments

The MLC argues that Spotify's $9.99 audiobook-only tier pricing is invalid because it includes both books and music, potentially resulting in millions of unpaid royalties.

The outcome of this case could have significant implications for how streaming services structure their bundled offerings and calculate royalty payments to rights holders.

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