Sony Music Sues Napster for $9.2M, Alleging Unpaid Royalties

Sony Music has filed a lawsuit against Napster and its parent companies Rhapsody International and Infinite Reality, which acquired the streaming platform in March.

The allegations:

• Sony alleges that Napster failed to make royalty payments for over a year, totaling $9.2 million.

• Sony had the option to terminate its agreement with Napster when its parent company sold the platform to Infinite Reality in November 2024, however opted to continue with the arrangement in exchange for a payment plan.

• That March 5, 2025, payment plan split the outstanding balance into four payments, stretching from 15 days after the acquisition to January 2026.

• Sony alleges Napster has failed to make any of those payments.

Copyright infringement:

• Sony Music and its affiliates, Orchard Enterprise NY, Foundation Media and Sony Music Entertainment Brasil, terminated Napster’s Sony Music license in the wake of it defaulting on the payment plan.

• Sony alleges that, despite this termination, Napster has illegally continued to “reproduce, distribute, publicly perform and other otherwise exploit Sony Music Entertainment’s sound recordings.”

• Sony is seeking up to $150,000 per infringed work, potentially totaling $37.5 million in damages.

Also in court:

• Napster and Sonos were sued by SoundExchange in June for more than $3.4 million in unpaid copyright royalties related to the Sonos Radio streaming service, which operated between 2020 and 2023.

What they said:

• A Napster spokesperson (as per Digital Music News): “We have no comment on pending litigation. However, we deeply value our relationships with all of our partners. We remain committed to rebuilding Napster’s relationships with all of the major labels and are hopeful for a swift and amicable resolution.”