Negligence theory questioned in Spotify royalty fraud class action - Daily Journal
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A federal judge's skepticism over negligence claims in a Spotify royalty fraud suit reveals how tort law's duty-of-care framework struggles when platform giants and creative industries collide.
Negligence TheoryPrincipal-Agent ProblemDuty of CarePlatform Liability
Theory Briefing
- Artists filed a class action alleging Spotify's negligence enabled royalty fraud, but a federal judge is questioning whether that legal theory holds.
- The negligence framework requires proving Spotify owed artists a duty of care — a threshold the court appears reluctant to accept.
- The case exposes the Principal-Agent problem: streaming platforms control royalty distribution, leaving artists with little oversight or recourse when fraud occurs.