The National Music Publishers’ Association (NMPA) and luxury exercise bike maker Peloton have fully settled litigation brought last year by 14 NMPA members.
In addition, according to the release announcing the settlement, Peloton and the trade association have entered into “a joint collaboration agreement” and will work together to “further optimize” Peloton’s music licensing systems and processes.
Peloton – which got close to generating 1 billion dollars in the 12 months to end of June 2019 – was sued by music publishers last March for the alleged infringement of over 1,000 musical works. The copyright lawsuit, originally for $150 million was later raised to $370m.
Peloton then filed a counter-claim in April 2019 against the NMPA, alleging that the trade body “coordinated to collectively negotiate licenses in violation of antitrust laws”.
The countersuit also alleged that the NMPA obstructed Peloton’s ability to conduct negotiations directly with NMPA members.
That counterclaim was dismissed by a judge in New York last month.
The Plaintiff publishers were Downtown Music Publishing, Anthem Entertainment, Big Deal Music, Pulse Music Group, peermusic, Greensleeves Publishing, Me Gusta Music, Reservoir Media Management, The Richmond Organization (TRO), Round Hill Music, The Royalty Network, STB Music, Tunecore and Ultra Music Publishing.
Peloton’s Head of Music Paul DeGooyer, said today that the company – whose music-driven training videos are available via a $39-per-month subscription on one of its $2,000-plus exercise machines – is “very proud to have pioneered a new revenue stream for recording artists and songwriters”.
“PELOTON IS AN INNOVATIVE COMPANY, AND WE ARE IMPRESSED WITH THE COMPANY’S INVESTMENT IN TECHNOLOGY AND COMMITMENT TO DELIVERING A POWERFUL, AUTHENTIC MUSIC EXPERIENCE.”
DAVID ISRAELITE, NMPA
NMPA President & CEO David Israelite said: “We are pleased the music publishers and their songwriter partners in this case have reached a settlement with Peloton that compensates creators properly and sets forth the environment for a positive relationship going forward.
“Peloton is an innovative company, and we are impressed with the company’s investment in technology and commitment to delivering a powerful, authentic music experience.
“We look forward to our ongoing collaboration to find solutions that will benefit all songwriters.”
“MUSIC IS AN IMPORTANT PART OF THE PELOTON EXPERIENCE, AND WE ARE VERY PROUD TO HAVE PIONEERED A NEW REVENUE STREAM FOR RECORDING ARTISTS AND SONGWRITERS.”
PAUL DEGOOYER, PELOTON
Peloton’s Head of Music Paul DeGooyer, added: “Music is an important part of the Peloton experience, and we are very proud to have pioneered a new revenue stream for recording artists and songwriters.
“We’re equally proud to partner with David and the NMPA to ensure that songwriters are, and continue to be, fairly compensated.
“With the NMPA’s input, we are confident our proprietary, state-of-the-art music system will provide an even more dynamic fitness experience for our millions of members worldwide.”Music Business Worldwide