Spotify is being sued by Wixen Music Publishing for allegedly using thousands of songs without a direct licence.
Wixen is seeking damages of $1.6 billion (£1.18 billion) from the streaming giant as part of its lawsuit filed in a California federal court.
The publisher’s catalog includes songs by Tom Petty, Rage Against The Machine, The Doors, Weezer and Stevie Nicks.
Wixen has further claimed that Spotify outsourced its work to a third party, which was “ill-equipped to obtain all the necessary mechanical licences”.
Spotify has not commented on the lawsuit. Last year the company made a settlement on a proposed class action alleging it failed to pay royalties.
The legal action from Wixen comes ahead of an anticipated IPO for Spotify. The streaming company has played a major role in driving growth in recorded music, according the latest BPI figures.
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