Rhapsody to pay up to $10m in songwriter-lawsuit settlement
Music company Rhapsody (now operating as Napster) was sued by singer-songwriters David Lowery, Victor Krummenacher and David Faragher.
A settlement was reached and, according to the company, Rhapsody will pay up to $10m (or up to $20m “if the company’s financial situation changes”, as reported by "Billboard") to self-published songwriters. This is in addition to an existing settlement between Rhapsody and the National Music Publishers Association which covers songwriters signed to publishers.
Moeover, Rhapsody will "set up an artist advisory board with an annual budget of at least $30,000 to promote the service as a creator-friendly platform, and institute an 'artist referral program’ that will give creators a $10 fee for each subscriber they refer”, reported "Billboard".