Spotify has filed a motion to dismiss the Mechanical Licensing Collective's (MLC) unpaid-royalties lawsuit, calling the organization's arguments "nonsensical and factually unsupportable."

The dispute centers on Spotify's 2024 decision to reclassify its main U.S. subscriptions as bundles after introducing a standalone audiobook tier. This reclassification significantly reduced Spotify's mechanical royalty payments, saving the company approximately $50 million between March and June alone.

The MLC's lawsuit, filed in May, argues that Spotify's packages don't qualify as true bundles because:

• Audiobooks access isn't a "differentiated product"
• The offering doesn't exceed the required "token value" for bundle classification

Spotify's dismissal motion, filed through Latham & Watkins, counters these claims by asserting:

• Audiobook streaming is distinctly different from music streaming
• 15 hours of monthly audiobook access carries more than token value
• Phonorecords IV doesn't require offering standalone audiobook products
• The platform could have reported its Premium service as a bundle since November 2023

Notably, Spotify emphasizes that dismissal with prejudice is particularly warranted since the MLC's legal expenses are funded by streaming services, including Spotify itself.

The platform's motion reflects its unwavering position on the audiobook bundles controversy, maintaining that no federal court litigation is necessary to confirm the legitimacy of its bundling strategy under current regulations.

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