2017-11-13 Joao Dos Santos Dec. Ex 7

Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 1 of 61

IN THE UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

MELISSA FERRICK, et al., No. I : 16-cv-08412 (AJN)

Plaintiff,

vs.

SPOTIFY USA INC., etal.,

Defendants.

CORRECTED EXHIBIT 8.1 TO THE DECLARATION OF JOAO DOS SANTOS IN SUPPORT OF'PLAINTIFFS' MOTION FOR FINAL APPROVAL

VOLUME 7 of 7 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 2 of 61

Exhibit B-1

1 "Spotify: A Global Streaming Leader" 2 "Spotify Showing Momentum Ahead of Possible Listing" a o'Exclusive J Report: Spotify Artist Payments Are Declining in 2017, Data Shows" 4 "Spotify Research Report: The Rock Star of Streaming Services"

5 TuneCore Blog: How Vy'e're Getting Your Mechanicals From Streams" 6 "SpotiSr Hit V/ith $150 Million Class Action Over Unpaid Royalties"

7 "Publishers Said to Be Missing as Much as 25 Percent of Streaming Royalties"

8 "Independent labels claimed 35%o market share in the US last year ... by ownership" 9 "Understanding and Measuring the Illiquidity Risk Premium" ooPandora l0 Media Corp - Spotify Sub Leap Evidence of Expanding Market For On- Demand" ll 'oUS' Music Streaming Royalties Explained" t2 Consolidated Financial Statements as of December 31,2016 and Independent Auditor's Report o'Exclusive 13 Report: Spotify Artist Payments Are Declining in 2017, Data Shows" I4 "Independent labels have a 37.6% global market share, says new report" l5 'oAn International Legal Symposium on the V/orld of Music, Film, Television and Sport: Enterprise Valuation" l6 ooA Primer for Valuation of Music Catalogs" I7 "Music Publishing's Steady Cash Lures Investors" l8 "Spotify, Valued at $13 Billion, to Launch Direct Listing onNYSE: Sources"

t9 'olnside Spotify's Financials: Is There a Path to Profitability Or an IPO?" 20 "Global Music Investing 2.0: More Options: More Subs" 2t "Spotify's Product Roars Ahead Amid Business Model Challenges" 22 'oStreaming Music Topic Primer" 23 'oMechanical and Performance Royalties: What's the Difference?" 24 "64 Amaxing Spotify Statistics and Facts (October 2017) 25 "Apple Music Saw Over 40M Users On Mobile Last Month, Leading Spotify by 10M" 26 "Big Publishers Feeling Cheated After Spotify's Small Publisher Deal" 27 "Spotifu Now Processes Nearly lBN Streams Every Day" 28 "Spotify's Losses Grow Despite Revenue Doubling in20l2" 29 "The Spotify Settlement with NMPA: What it Means for Music Publishers" 30 "Spotify Music-Streaming Service Launches in U.S." 31 "Spotify vs. Apple Music: Which Service is the Streaming King?" Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 3 of 61

24 ó4 AmazingCase Spotrty 1:16-cv-08412-AJN Statrstics and Facts Document(Uctober'¿OI7) 288-7 | tsy Filedthe Numbors 11/13/17 Page 4 of 61Page t oI lI

DMR

BUSTNFSS $TATr$TICS I FI.JN GANGETS

SÏATßNC RËPORT$ STATISTIC POSTS FUN GADGETS

DMR ¡ DIGITAL. S'rAT ARTICLËS r ÞlGlTAL COMPANY $TATISTICS I SFOTIËY 8T418 64 Amazi nS $potify $tatistics and Facts (October z01r) I By the Numbers ARl lGl"E LÀSI UPDATÉ[): O0I'OBER 31, 2017 t3Y Cf$lG SMITH

F/ease nate that some of fhese numbers ars easier ta find than othars, A few af these sfafs come from Spofrfy's own reporfs, þuf sorne aro þassd ûn new.s repofts and not offíciat ëotnpany tallíes. åast?a//¡ fhis is fie besf I mn finc! and t don't guarantae anything to be 100% acc¿¡rafe.

Spotify's reported revenue total for 2015:

$1 1B billion

Spotify's reported revenue total for 2014:

$1 3 billion

Percentage of Spotify listeners that are m¡llennials:

a 4õ/ lt-tù

l.ast updated 4117116

ftlost streamed artist on Spotify in 2015:

tLlt012017 http s ://expandedramblings. com/index.php/spotiff - statistics/2/ o¿+ AmazlngCase spotlty 1:16-cv-08412-AJN ¡itatlstlcs anc lacts (uctoDerDocument ¿vL 288-7 l) | öy meFiled NumDers 11/13/17 Page 5 of 61rage¿ortt

Drake

Most streamed female on Spotify in 2015:

Rhi*nna

Most Spotify streams in a single day:

Justin lliel¡or

Most streamed Song on Spotify in 2015:

Leein On (by Major Lazer)

Þ Domo: The Leader Among Leaders. See Why Users Rated Domo the Best Bl Platform. Ad llomo

Learrr Mc:re

Most streamed album on Spotfiy in 2015:

Beauty Behind tho Mac/noss (by The Weektttl)

Most streamed artist on Spot¡fy (all time):

F'Sheeri¡rr

L r";i updated 1211115

Most mus¡cal day on Spotify in 2015:

,1"'re 19th

Number of streams for Spotify's "Discover Weekly" playlist:

5 l.illlon

L.ast rrprJatecl \lzt|l 16

https ://expandedramblings.com/index.php/spotiff -statistics/2/ nlt0l20t7 o¿+ AmazlngCase ùpouly 1:16-cv-08412-AJN ¡itausucs ano racß (uctooerDocument ¿vt 288-7 I ) | rty Filedme Numoers 11/13/17 Page 6 of 61rageJ0rrr

Number of Spotify users that use the Discover Weekly feature:

40 million

L.ast updated 5/25/1ô

Top strearned music genre on Discover Weekly:

Fop

Last updated 5125t16

Get the Full Report Here

FILED UNLrL.t?.: lll0 flAL OOlvlFÅNY $TAl"l$1 1úS, ¡)"rA'rS îAGGEü \,\ilTl'l: tiY-fHE NUIVIBIIì$. SüClÁl, MUSl0, 3P0ï ITY

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25 11t10t2017 Case 1:16-cv-08412-AJNApple Music saw over40M Document users on mob¡le288-7 last month,Filed lead¡ng 11/13/17 Spotify by Page 10M | 9toSMac 16 of 61

:m Gtû

While Spotify may lead in terms of subscribers, ¡t's already been proven that Apple Music can dominate even with its smaller user base- A new report from analytics firm Verto further highlights the sometimes underestimated reach of Apple Music.

The report shows that Apple Music comes out on top in terms of monthly unique users, thanks in large part to the three-month free trial Apple offers. 't tt tvt¿u l I Case 1:16-cv-08412-AJNApFe Musrc s¿tw over4uM Document users on 288-7moo[e tast Filedmonn, feaomg11/13/17 5po1r1y DyPage 1oM I gto5M¿tc17 of 61

The data from Verto says that Apple Music aüracted 40.7 million unique users during the month of February in the US, putting it well ahead of Pandora a132.6 million unique users. Spotify rounded out the top three, coming in with 30.4 million unique users. Coming in fourth is iHeartRadio, while the struggling SoundCloud places fifth. These numbers include mobile users only, meaning they are likely higher if you take into account desktop.

Vetro explained To TechCrunch that how Apple Music was able to bring in so many unique monthly users centers around the threemonth free trial that Apple offers. The analytics fìrm says that the free trial more than doubles the amount of people who use Apple Music in the United States.

This is an interesting tidbit of data for a number of reasons. For one, it really exemplifres just how big of a benefit Apple Music has by coming preinstalled on all iOS devices. Furthermore, it represents the potentialfor growth that Apple's streaming music service still has.

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Most recently, Apple stated that Apple Music has "well past" 20 million pay¡ng subscribers worldwide. Today's data from Verto claims that, in the US alone, Apple Music saw over 40 million unÍque users, presumably the majority of whom were free trial customers. Spotify, on the other hand, recently touted that it has 50 million paying subscribers worldwide, while it also has over 100 million users on ¡ts paid + free tiers comb¡ned. Nevertheless, Apple Music still outperformed Spotify in terms of active users in the United States.

What this means for artists spec¡fically is that if they're looking for the best platform to go to with exclusive content, or content in general, Apple Music has the broadest reach. This is especially notable considering Apple pays artists during that three-month free trial.

A lot has been made about the success of Apple Music and Beats 1, but information like this highlights how Apple's large user base gives Ít an automatic leg-up compared to its compet¡tors.

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Guides

* Apple Music Apple's streaming music service

About the Author

hhc. Jr'cÞaÃa+ æ Ð^4 a t^a ttôr--^t^ a, ¡ch ñ^hilã.¡ Ei'e I tI lvlzv I I ¿+u[vt Case 1:16-cv-08412-AJNÂppre lvlusr(.; saw ovef Document useÊi oft ft¡(.¡o[e288-7 rasl Filedfnonut, teao¡ng11/13/17 ùpoufy Dy Page tuM I vtocMac20 of 61 n :ì,: i: t.iì i /1, Tips, questions, typos to [email protected]

Chonce Miller's fovorite geor - DJI Spork

Joybird X3 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 21 of 61

26 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 22 of 61

llusts ö llmrn trrr lhttps:/1wvwry. digital musicn ews.coml

Fl*fos fh$ôsüriyþ1t"Sle\¿lt¡t¡pï{+e¡¡.'s.i*lr{ ) ãSáldf¡€ NÊìr,Ê {hrþ$:{}4st¡¡e.Stel$åliñn5l(fr*rs.{q,n¡brê3kjngrl

Big Publirhers teclürg Ghcatcd fftcr Sptilt's Small Publlsher lh¡l ¡ Peül Resnil0ff fhttos:/rTÍr.dilitalmus¡cnews-com/¿üth0rl0resnikotr/ì @ l¡ne 16.20t? Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 23 of 61

Did maþt puùlishcrs got hoodrinkod lt Spotiû ¡¡l their om tn& ¡ssociation? Ihatl tho ¡crttlctutt this roek in th¡ rake d ar ¡nprs¡rr sciltle¡roÍ ht sra[¡r publirhorr

So just to bring everyone up to speed...

no. And, a bunch of stipulat¡ons for matching songs properly and cleaning up problems at Hârry Fox Agency (HFA).

${3 m¡ll¡on fûr th. lit{r grn $30 rillion hr tlo ùig grye S.. th. Fotlem lGr.?

Accordingly, sources close to both settlements are now telling DMN about some pissed-off mega-publishers. As in, lruhy did we only get $3O million!7 type frufrations.

Entrepreneur Elevator Pitch Ep7: More Secure Connect¡ons

Entrepreneur Elevator Pitch Ep6: Can a Saliva Test Tell You whether He's the One? Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 24 of 61 lt Entrepreneur Elevator P¡tch Ep5: 'People Suck atJudging other People' ti

After all, big publishers could have sued the crap out of Spotifo and won, But they went the safer. gender, lower-paying route to keep the peace among warring industry tribes-

Big F-king n*strh. way, way more (or something like that). unmatched royalties for the periods afterjune 2016."

But ¡¡at tlrcc tnnddrrd rqrltiæ for thc ¡ericds rfrrr lum 2016'rkc¡d, flGd bt Sest¡fr? Here\ the letter.

From: Dan¡elle Aguirre, EVP & General Counsel at the National Music Publisherl Association To: Subject lmportant Notice Regarding the Spotiûr Class Action

Dear Publisher,

Låst weeh ã class act¡on settlement was reported between Spotifr and a plaint¡ff class of songwriters.

to a s¡gn¡f¡cant sum for the proposed class.

As a participant ¡n the NMPA sêttlement it is ¡mportant to under*and how our settlement works and the full benefits you will receive.

multiple accrual periods through 2019.

unmatchedroyaltiesfortheperiodsafter¡une20l6. lnfact theamounttobepaidoutthroughJune20lTisalreadysubstantiallymorethan$30million.Thechafatt¿chedhere

ferldl

songwriters properly. We are glad that this class has chosen a parallel route that will allow all copyright holders to claim what is theirs'and help fix the system for the future.

lfyou have any questions, please do not hesitate to contact us.

Best

Danielle M. Aguirre EVP & General Counse¡ National Music Publisherf Association

As for the,ârlâchåd here lhto:/ portion, the NMPA calls for overall mechanical royalties north of $76.3 million by mid- 2019. And, as high as $134.1 million. But thafs the best case scenario.

Sounds like a big amount, though publishers probably could have multiplied that f¡gure in litigation. Shoulda, coulda, woulda... fR0t THt ftB PoweredbYZersNet Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 25 of 61

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Spotifv f httos://www.dígita tm usicnews.(om/tag/spot¡fy/t

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Digital Music News is the leading authority for music industry professionals worldwide. We are based in Santa Monica, CA. More about us here (http://wp-me/P40mAq-iCEl. Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 32 of 61 süBsSntBI

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K€LATED POSTS trfitfffffiIï$Frñ Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 35 of 61

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lljiB APP$ $p[ït fT T$ , $potify's losses grow despite revenue doubling in 2012 by nateog | .tut:t ,2013,3:54pm EDT

Spotify Windows Phone I

A major question looms over Spotify and its streaming music competition: can anyone grow into a profitable business? For Spotífy, the answer is not yet. ln 2012, Spotify's revenue doubled, but it also failed to turn a profit as its losses grew due to increased licensing fees, The WallSfreef Journalsaid in a re port. The problem here is that all Spotify does is stream music. And in order to do that, it has to pay record labels and musicians licensing fees so it'll have something to stream. For now, the tg,ffLale growing along with everything else and profit remains out of reach. https://www.theverge.com/20131713114575506/spotify-doubled-revenue-in-2012-but-losses-grow 1t3 I ll tvt¿v t r Case 1:16-cv-08412-AJNùP(Jrlry5 rusìjstr Document gruw ut ùPl]E 288-7 It vcltuE Fileduuuuilttg 11/13/17 tÍl ¿v I¿- I Itt vt,tggPage 39 of 61 ln 2011, when the music service made its US debut after years of popularity in Europe, Spotify brought in about $ZSZ million in revenue, according to the Journal. ln 2012, revenue jumped to $576.5 million, the report said. Losses meanwhile have grown from $60 million in 2011 to $77 million in 2012, largely due to increased licensing fees, the

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Journalsaid. Spotify reported these numbers in regulatory filings submitted to the Luxembourg company registry. While the company hasn't broken out how much it specifically spent on licensing fees last year, the Jaurnal noted that Spotify has paid more than $500 million in royalties since launching the service back in 2006.

The company has previously said that about 70 percent of its revenue - which comes from ad sales and paying subscribers - goes toward paying licensing fees. As of July, Spotify has about 6 rnillion paid subscribens , 1 million of whom have signed up since December. But there are another 18 million Spotify users who don't pay, opting instead to listen to up to 10 hours of free music filled with radio-style ads each month.

Clearly, Spotify needs to grow its paying customer base if it's going to turn into a viable business. lt's also hoping that expansions into Mexico, Hong Kong, Malaysia, Singapore, and other nêw markets will hel p push the company into profitability. The company is also negotiating with record labels for price breaks on the licensi ng fees that are eating into its revenue. Spotify's issues, of course, aren't unique. Pandora and Rdio face similar hurdles as royalties industry-wide have hit the $1 n¡ll¡on mark. One si gn of hope for the likes of Spotify is the fact that streaming music has caug ht on so much that it's bitten into music downloads. But this has also pushed Gg*qgle and Ap-p_lg into the streaming music ranks, giving Spotify even more competition in an already crowded space"

. SOURCE: The Wall Street Journal

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Build a brand. Protect it.sM

The Spotify Settlement With NMPA: What lt Means for Music Publishers About Us The Sports, Arts and By Krista lrons on 1.6.17 I Posted in Entertainment Entertainment Group at Garvey Schubert Barer provides full service legal ln March 2Q16, the popular music representatíon on sports, streaming service, Spotify, entertainment and reached a settlement with the business matters, including National Music Publishers handling transactions related to brand Association ("NMPA") to cover management, licensing, billions of unlicensed publishers streams from member joint ventures, venture dating back to the service's U.S. launch in 2O11.L1l Spotify capital, private equity, will pay $2S mill¡on to publishers and songwriters and $5 technology, the lnternet and new media. million in punitive damages-a sum many are calling an Read More easy break for the billion dollar streaming service.[2] Those

http://www.gsblaw.com/sports-entertainment-beat/the-spotlfy-setllement-with-nmpa-what-it 1t9 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 43 of 61 who had their mechanical license rights infringed had until Recent Posts June 30, 2016, to opt-in to a settlement agreement between The WashÍngton Redskins Win the NMPA and Spotify. The NMPA negotiated the Their Trademark Battle in settlement with Spotify on behalf of its members.[3]The pros Overtime and cons of opting-in have been hotly debated as class The Spotify Settlement With action lawsuits, such as those brought by singer David NMPA: What lt Means for Lowery and singer-songwriter Melissa Ferrick, have been Music Publishers filed. 25 ls the New 40: California's AB-1687 The NMPA, founded in 1917, ís the trade association Brexit Fallout: Why Brand responsible for advancing the interests of music publishers Owners Should Consider and their songwriting partners in matters relating to the Proactive Trademark Filings in domestic and global protection of music copyrights.[a] The the UK

NMPA's goal is to protect and advocate for its members' Golfls (Less Than) Triumphant property rights in copyright law by proposing advantageous Return to the 2016 Rio Summer Olympics? legislation and regulations, as well as supporting members in litigation.tsl tne NMPA's members include both major and Jackson v. Black lnk Tattoo independent music publishing companies such as Studio lnc.: Why Consent Forms for Tattoo Artists Are an Sony/ATV, Universal Music Publishing Group, and BMG lndelibly Good ldea Rights Management.[6] The NMPA owned the Harry Fox The lnk lsn't Dry Agency ("HFA") until 2015. Skateboa rding Ëxperience Spotify is a Sweden-based online streaming cornpany that Redesigned-Entrepreneur allows its 100 million subscribers,30 million of which are Patents the World's Only Suspension Skate ïruck paid subscribers, to access millions of songs.[7] The company is required to pay a licensing fee to artists, and New York Attorney General Spotify, like other online streaming services, contracts this Says Daily Fantasy Sports Contests Are lllegal process out to HFA.[8] HFA acts as a clearinghouse by issuing mechanical licenses for song reproductions on Eugene Lee Debuts His Book "My Brotherts Keeper: Above & behalf of the 45,000 publishers it represents.f9] A Beyond'The Dotted Line' With mechanical license "grants the rights to reproduce and the NFL's Most Ethical Agent" distribute copyrighted musical compositions."[10] However,

Topics http://www.gsblawcom/sports-entertainm€nt-beaUthe-spotify-setllement-with-nmpa-what-it 2ts Case 1:16-cv-08412-AJNrr19 9Puury gotlr9llr9rr¡ YYrl¡r Document llrvrrÃ. YYr¡øt r¡ 288-7rvrËgilù r9r rvruÐrLFiled ruv¡rÐrtEtù, 11/13/17 oPUttÞ Pageq Etttgltaf 44 ililEilt of 61 ogal litigation began when Spotify failed to pay song owners their royalties from the mechanical licenses. Archives

The process of obtaining and paying royalties through copyright licensing is fairly standardized. Spotify must Contributors

obtain two different licenses from music publishers: a the Larry J, Brant mechanical license and a public performance license. Public Judy Endejan performance licenses, which allow one to publicly perform someone else's musical creations, are easier to obtain; Claire Hawkins Spotify can negotiate a blanket license with one of the three Maurice W. Heller performance rights organizations and then pay a lump sum.

[11] However, mechanícal licenses are typically obtained Hillary H. Hughes from the music publishers dírectly. Spotify used HFA's William J. Keeler, Jr. services to oþtain mechanical licenses, and then sent their Melodie A. Virtue streaming data to HFA in return.[1z] HFA matched the data to the songs their publishers own, and then calculated the Ruth Walters publisher's share of the royalties for the underlying Scott G. Warner compositions.[13] The controversy arose when Spotify began infringing the publisher's rights when royalties for every song streamed from Spotifu's 40 million song database could not be calculated and paid to the song owners, as a result of Spotify's inability to properly match songs to their copyright holders based on data from ¡¡4.ttaJ ïhe NMPA then stepped in to advocate for the rights of its members.

ln March 2016, the NMPA and Spotify announced a settlement in which publishers would receive royalties for compositions Spotify had already utilized in its catalog in the United States where ownership information had been previously unknown.[15] Under the terms of the settlement, publishers were able to claim past royalties owed and ensure that future royalties were paid when due.i16l After all http://www.gsblawcom/sports-entertainmenþbeaUthe-spotify-settlement-with-nmpa-what-it 3/9 Case 1:16-cv-08412-AJNI r¡e vPgury ger$errr9r¡r Yvrrrr Document r{rvrr^. YYilor rr 288-7 rvrsa¡rÐ rur Filedrvtuùlv Tuuxùt¡gtù. 11/13/17 ùPUtts Page q Eilrgttallllltilll, 45 of 61Erual claims were addressed, the additional money included in the settlement, including tne $5 million payment for punitive damages, was distributed to publishers who choose to opt- ín to the settlement based on their proportionate amount of Spotify streams.[17]

There wôs some hesitation among publishers and songwriters in deciding whether to opt-in, especially in light of the class action lawsuits filed against Spotify. Most notably, David Lowery filed suit in December 2015 alleging $lSO million in damages due to nonpayment of mechanical royalties.[f8] Lowery represents a class of musicians who claim that Spotify knowingly and willfully infringed on copyrights by failing to obtain mechanical licenses or pay royalties to the copyright owners.[19] the case has since been consolidated with other lawsuits brought against Spotify, such as the one by singer-songwriter Melissa Ferr¡ck.[20]

ln today's litigious atmosphere, class action certification is not always granted and individual plaintiff suits can be costly. Those who opted-in to the settlement instead of joining the class actions were guaranteed some compensation for the unlicensed songs streamed on Spotify. Thus, the settlement provided a way to minimize legal fees for those who did not stand to recover a large sum from Spotify. Lastly, through the settlement, publishers assisted SpotÍfy in building a database for submission of claims of royalties owed.[21] Registry in Spotify's database will ensure its ability to locate and pay the proper soñg owners for future streams.[22]

http://www.gsblaw.com/sports-entertainment-beaVthe-spotifu-settlemenl-with-nmpa-what-it 4t9 Case 1:16-cv-08412-AJNrrregPvar)r99ru9illgtttYYrùrtrrvrr^.yyrrqtrrryrsørrùr9rtvruÞtgru9[Ðttgtù.9PUt Document 288-7 Filed 11/13/17 lûqeltttiltallllllglltDuataPage 46 of 61 However, the restrictions imposed by the terms of the settlement may not outweigh the benefíts. Those who opted-in to the settlement were required to waive their rights to bring separate claims for infringement against Spotify, or to join in a future class action lawsuit.[23] lf th" pending class action lawsuit brought by Lowery and Ferríck, which estÍmate damages between $tSO-ZOO millíon, prevails, those who opted-in to the settlement will be unable to recover.p4lAdditionally, the settlement between Spotify and the NMPA was private; the artists did not have the opportunity to participate in negotiations.[25] Further, there was no judicial oversight ensuring that the settlement was fair.[26] The NMPA founded and maintains close ties to HFA so there was speculation of collusion,l2T) With class certification, there is guaranteed transparency provided by the court that the settlement reached is fair and equitable to all class members, which those who opted-in effectively waived. The final settlement figure was $30 million, but it is unclear how much that translated to for individual artists.[28]

The NMPA assisted in negotiating the settlement on behalf of its members. lt estimated that as much as 25 percent of all royalties owed by Spotify were either unpaid or distributed to an improper party due to Spotify's neglect in obtaining mechanical licenses.[29] According to David lsraelite, President and CEO of the NMPA, the settlement allows both NMPA members and non-NMPA members to participate.[3o] One of the terms of the settlement required Spotify to publish a list of songs they could not match to publishers so that those who chose to opt-in would have the opportunity to review the list and claim any songs as their own.[31] lf any songs are left unclaimed after the deadline, the money that would have gone to those owners http://www.gsblaw.com/sports-entertainment-beaVthe-spotlfy-setllemenþwith-nmpa-what-¡t 5/9 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17. vt vrvr túPage 47 of 61 will be liquídated and distributed per a market share distribution formula to the remaining publishers and songwriters.l32l Spotiff also agreed to implement a series of best practices to prevent future mechanical license infringement.[33]

The class action lawsuit Ís still pending, and as of November 7,2016, the only case update was that Spotify counsel's motion to transfer venue to the Southern District of New York was granted.l3al

**f<

Krista lrons, a law student at Brooklyn Law School, was GSB's fall 2O16 legal extern who worked out of its New York office.

[1] Ed ChrÍstman, Spotify Adds $S ¡vt¡tt¡on in Damages, Billboard, (Oct. 31, 2016, 4:25PM),

http ://www. b i I I boa rd. co m/a rti cl es/b u si n ess/691 3442 I spotify -

n m pa-settlement-plan.

[2] Bonnie Eslinger, Spotifyb C/ass Communications Off- Limits, Law360, (Oct. 31, 2016, 4:33PM),

http://www. I aw36O.co m/a rticlesl799440ls potify-s-class-

co m m u n i cati o n s-off- I i m its-i n-1 5 0 m-i p-row.

131 td.

[4] Mission Statemenf, NMPA, (Oct. 31, 4:36PM),

http ://n m pa, o rgla b o ut/#m is s i o n_state m e nt.

l5l Advocacy, NMPA, (Oct. 31,2016,4:37PM), http ://n m pa. o rglatwo rkl#a dvoca cy.

http://www.gsblaw.com/sports-entertainment-beavthe-spotify-settlement-with-nmpa-what-it 6/9 vsr.re¡rrsrrl vrrr¡r rrryrr^, rvrrgt rt tYrgqrtÞ twt tYtulru ruv[ùt¡gtù. q Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/179P9t1Þ Page EiltEttoÍlillt,rlt 48 of 61ctual f6l Dale Kawashima, NMPA President David lsraelite Discusses, Songwriter Universe, (Oct. 31, 2016,4:38PM),

http ://www.s on gwriteru n iverse.com/david-israel ite-n m pa- 2016.htm

[7] Sarene Mae Butao, Spotify Reached 30 Million Subscribers While Apple is Closing The Gap, University Herald, (Nov. 21, 2016, 1:57PM),

http ://www. u n ive rs ityh e ra I d. co m/a rti cl es/32 3 0 0 I 2016O621 I sç

reached-30-m ill ion-su bscriþers-wh il e-a pple-is-closing-the- gap.htm#!. l8l How We Pay Royalties, Spotify Artists, (Oct. 31,2016,

5 : 0 I P M ), h tt p s ://www. s p ot i f,7a rt i sts. c o m /s p ot i fy- ex p I a i n ed I #how-we-p ay-roya I ti es-ove rvi ew. l9l What Does HFA Do? HFA, (Oct. 31, 2016, 5:10PM), http ://www. h a rryfox. co m/pu bl is h ers/wh at_d oes_hfa_d o. htm I ll}l What is a Mechanical License?, HFA, (Oct. 31,2016, 4:39PM), h ttps ://www. h a rryfox. co m/l i ce n se_m usic/wh at_i s_m ec h a n i ce l11l Music Royalties, Royalty Exchange, (Nov.7,2A16,

2 : 5 8 P M), http ://www. roya ltyexc h a n g e. co m/l e a rnlm us i c- royalties.

[12] Dale Kawashima, NMPA President David lsraelite Discusses.

[13] /d. l14l td. l15J td.

http://www.gsblaw.com/sports-entertainment-bealthe-spotify-settlement-with-nmpa-whaÞit 7t9 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 49 of 61 116l td. t17l Ed Christman, Spotify Adds $5 fø¡tt¡on in Damages. fl8l Ed Christman, Spotify Hit with Second Lawsuit, Billboard, (Oct. 31,2016,4:4PM), http://www. b i I I boa rd. co m/a rti cl es/b u s i n ess/6836439/s potify- h it-with-second-copyri g ht-i nfri n g em ent-lawsu it- mel issa- m errick-davíd-lowery. llel td. f20l Bonnie Eslinger, Spatify's C/ass CommunicatÌons Off- Limits l21J td, l22l td.

1231 td. l24l Firm Handling Class-Action Suit Agaínst Spotify Lists Cons of NMPA Settlemenf, Billboard, (Nov. 7, 2016, 3:32PM), h ttp ://www. b i I I b o a rd. co m/a rt i c I e s/ b u s i n e ss/72 637 16 I spotify- n m pa -settl e me nt-cl a ss-a cti o n-l aws u it-fa q. l25l td,

[26] Paul Resnikoff, Songwriters: Should You Sign the Spotify Settlement Agreement?, Digital Music News, (Nov. 7, 2016,3:31PM), http ://www. d i g ita I m u s icn ews. c om I 2016 I 03 116lf r eq u e ntly- a s k e d -q u e st i o n s-a b o u t-t h e-s pot i fy-s ettl e m e nt-a g re e m e nt/. l27l Things Every Songwriter Should Know, The Trichordist, (Nov. 7, 2016,3:29PM), htt p s : //t h etr i c h o rd i st. c o m /2 O 16 / 03 / 17 lt h i n g s-eve ry- http://www.gsblaw.com/sports-enterta¡nment-beaVthe-spotify-settlement-with-nmpa-what-it 8/9 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 50 of 61

so n g write r-s h o u I d-know-befo re-th ey-j o i n - n m pa-s potify- settlemenV.

l28J Firm Handlíng Class-Action Suit Against Spotify Lísts Cons of NMPA Settlemenf, Billboard (Nov, 7,2016,3:32PM),

http ://www. b i I I boa rd.co m/a rti c I es/b usi n ess/72 6371 6/s potify-

n m pa-settl eme nt-class-action-l aws uit-faq

l29l Who We Are, NMPA, (Oct. 31, 2016, 4:45PM), http://n m pa. o rglm em bers/wh o-we-a rel.

[30] Dale Kawashima, NMPA President David lsraelite Dlscusses.

L31l td.

[321 rd,

[33] /d.

l34l Dockets: Melissa Ferrick et al v. Spotify USA lnc., et al, Law360, (Oct. 31, 2016, 4:47PMl,

h tt p : //www. I a w3 6 0. co m /c a s e s/ 5 6 I 2 6 a c 6 a 2 b c d22d21)0 0 O 0 page=1.

Tags: blanket license, BMG Rights, BMG Rights Management, class action lawsuits, clearinghouse, copyright law, copyright licensing, Þavid Lowery, Harry Fox Agency, HFA, independent music publishing compãny, major music publishing compâny, mechanlcal llcense lnfringement, mechanlcal license rights, mechanical royalties,.Melissa Ferrick, music copyrights, Music Publishers, music streaming service, National Music Publishers Association, NMPA, Property Rights, public performance licenses, Royaltles, song reproductions, Songwriters, Sony/ATV, Spotlfy, U niversal Music Publishing Group

http://wwwgsblaw.com/sports-entertainment-beaUthe-spotify-settlemtsnt-with-nmpa-what-it 9/9 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 51 of 61

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Spotify rrusic-streaming service launches in U.S.

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STORY HIGHUGHTS (CNN) - The höttest music venuo in Europe openod its doors on NEW: Spotlty launches ln the ïhursday morning to a select group in ths United Statos. U.S, on Thuruday mornlno

The musìc.streamlng seruiæ Spotiry, which makes lnternet muslc-stroamlng softwâre, lâunch€d has beon wildly popular in the much-hyped U.S, version of its servioe after delays and years of Eurcpe negotlation. It's tâken swhll8 for Spotlfy to debut in U,S, bscause of At first, Spotify ænc6ms from record labels wlll only accept new memb€rs to ib free ssrvlco who recoive invltatlons from the company, on€ of it6 sponsors or a curront u8er,

"Thls is the blggest market in thê world," Kenneth Parks, Spotify's content chlef, said in an inlerview late Wednesday. 'We haven't done a launoh this large."

Googl€+, the new social network, also launched recently using an invll€-only scheme. Spotiry plans to welcome everyone for free sfter "gevEral weeks,' Parks said.

The SpotlfrT cÐmputer program will let people choose from any of 15 milllon songs to hoar for fr€e - up to 10 hours per monlh, with each track llstenable up to f¡ve timos, For the first six monlhs, howevêr, peoplê who enter durlng the inv¡tallon psrlod sre exempt from the monlhly llmlt, Parks ú!¡h4a iJ.$ {irtlari sald.

After that, us€rs can lift the restrict¡ons by paying g5 a month or buying lnd¡vidually, RELATÊD TOPICS songs like iTunes, Tha smartphone apps can be accessed for $10 a monlh, which includes unlimited gpôtlty Lld, ¡luslc streaming and th€ abllity to savo copy-protected music for l¡stêning lnt€mst ll¡¡slc s.rulcar oflline.

The ability to create and shar€ playllsts wlth Faoebook f¡lends has formed a beehive mix-tape culture smong the more than 10 mlllion ugsrs in Europe.

From a small office in Stockholm, Swed6n, Spoll$ qulckly spread its tsntacles acrosg Europe, But durlng the past couple of years, the company hag bêen oaught in a web of bureaucracy. Recordlabel executiv€s have expressed concem that Spotify's froe offerlng dovaluoo music and do69n't drum up slgniflcant revenue,

"They wanted to be careful,' Parks said. "Spotlff has always had a view thât the ÍÍee experience was coro to what Spotify was all about http :/iwww. cnn.com/20 f 1 /TEC H/web/07/1 3/spotify. us/index. html 1t2 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 53 of 61 and key to get users to inv€st in the sefvlc€.'

Spotlfy CEO Danlel Ek echoed that belisf ât a tochnology conference in December, as he has in sevo¡al publlc appearances bafore that and likely will again at Fortune's Brelnstom Tech conference noxt week.

"We really belleve in our model,' Ek sald at the D: Dlve lnto Mobile conf6renc6 last y€ar. nVE would not just launch â subscrlpllon modal, because we don't think that's going to work."

Now, the four major labels and Spotiry have llnally settled their disputes. ln lh€ t¡mo s¡nce, the record companles have glven tho go. ahead to compstlng digltal muslc lnlllatives such as Rdio, MOG and, most recenll¡ Apple's iTunes Match.

'We thlnk there's dêflnll€ly room 6nd âppetlto for a servlcs llko Spotify," Parks said. "Ther€ r€ally is nolhing like il ln the msrkot.'

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http://www.cnn.com/201 1 /TECHlwebl}T I l3lspotify. us/index.html 2t2 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 54 of 61

31 11nUt?V"t I Case 1:16-cv-08412-AJN DocumentAppr€ Musrc 288-7vs, Spotry FiledI utgttal 11/13/17lr€nds Page 55 of 61

Hcnre > j\.,lr¡sic > Spofifyvs.Apple Music:Whlch serv¡cê isthe...

Spotify vs.Apple Mulsic: \Vhich service is the strecming king? By Digitäl Trends staff - Posted on.lune 21,2A17 11:17 am

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Update: We've aclded some information abaut Spotìfy's Secret qenius progrom, Apple's recently announced multiroctm speøker, and Appte Music's $99 annuo! subscriptlon, qs well os the fact thqt Taylor 1wift\ music is now on Spotify.

When it comes to subscribers, the undisputed king of on-demand streaming music is 5potiry. The Swedish-born service helped pioneer the current market, and has tens of millions more paicJ users than the competition, not to mention millions more free users. But Apple Music, known for its high-level exclusive releases and full inte1r1tl0n oo:1" oo,:''"''nt,,:1'*:T' snotirv's ::" ': ':::''-:":'::':': 11 f"l ';ool',"i.:,T"' "l

https:i/www.digitaltrends.com/music/apple-music-vs-spotífy/ 1t6 't1t1ut2u1 ( Case 1:16-cv-08412-AJN DocumentAppre Music 288-7vs. spotity FiledI Dig¡tal 11/13/17 I'rends Page 56 of 61 It's hardly surprising that Apple Music is so successful. Not only is it backed by one of the biggest brands in the world, it also gives users access to the entire iïunes libr"rry, a swath of curated playlists, and a 24-hour radio

station helmed by BBC-alum Zane Lowe. Fven the required subscription fee of $10 per month is no Breat barrier for entry as Apple Music offers a three-month free trial and a discounted family plan.

Apple and Spotiff are the biggest musíc seryices on the market: how do the two compare, back to back? Which is the best streaming service? Follow us below to see if Apple has what it takes to steal Spotify s crown, and fincl ot.rt which service is best for you,

MUSIC LIBRARV

Spotify first gained its dominant position on the strength of its impressive 30 rrrillion-plus song catalog, Couple

this with the fact that it adds over 20,000 new songs each cJay, and the service offers more music than your ears even know what to do with. While several holes do exist in its library - Garth Brooks, Tool - Spotify's catalog is extremely deep, and even holdout laylor Swift has conceded her protest. Moreover, the Swedish streaming service brings all the latest record releâses, exclusive live sessions, and various new s¡ngles right to its New

Releases tab each Friday, providing a great way to hear the latest from established art¡sts, and rising stars alike. 0ust stroll through our favorite 5poÌify playlists for a sense of the size is the catãlog.)

1 of4 Music library

Apple's service touts around 40 rrillion songs, however, which is superior to Spotify's "more than 30 million" fígure (though we're not sure by how much), and also outdoes newer contenders like Amazon's paici

streaming service and Jay Z's Tidal. Moreover, Apple has taken steps to secure more exclusives than the competit¡on, Spotify isn't too happy with artists signing exclusivity deals with Apple, either. Spotify reportedly has a history of altering search rankings for art¡sts who release their music through Apple first.

h ttps://www.d i gitaltrends. com/muslc/apple-m usi c-vs-spotify/ 2t6 't lt tvt¿u I I Case 1:16-cv-08412-AJN DocumentAppro rvrusrc 288-7vs. Þpolrry Filed| utgttar 11/13/17I Page 57 of 61 There's another area where Apple Music has the leg up on its competition: integration of the iTunes library, Any music you've got - whether previously purchased via the iTunes Store, ripped from a physical CD, or uploaded to ililnes Match * will appear in your Apple Music library, givlng you the option to freely browse your own rnusic

alongside Apple's standard catalog, Spotify offers a simllar function, relegating your local rnusic files to a sepärate tab, but you can't access your local music via broad searches like you can with Apple lvluslc.

Winner: Apple Music

MUSIC DISCOVERY

With so many songs at the ready, spoüry5 library can seem daunting for those who want to find new muslc, but the company provides a lot of useful tools for flnding new songs to suit your lndivldual taste.

Playlists like Release Radar, New lVlusic Friday, and Monday's personalized Discover Weekly provide fantastic opportunlties for subscribers to latch on to new music. The programJs deep well of dozens of base genres to choose from * and another 20 to 30 selectable playlists - mãkes new music ripe for the picking, and other personalized playlists like Daily Mixes are constantly being added to the mix.

Spotify even has a featured series called Secret Genius, which allows fans of pop music to listen to the songwriters behind some of their favorite hits.

Discover Weekly in particular deserves high praise in the strearning worid (it's so smart that Google copied the feature). Added to your feed every Monday morning, the feature delivers a two-hour playlist of personalized music recommendations based on your listening habits, as well as the habits of those who listen to similar artists. Plðyl¡sts are often chock-full of music you haven't heard before, as well as deep cuts from sonle of your

favorite artists, thus broadening your listening repertoire with a collection of songs right up your alley. Listen to a lot of Black Keys? Your weekly playlist might include The Arcs, a side project of Black Keys guitarist Dan

Auerbach. Fan of Dawes or Neil Young? Expect to find the likes of Laurel Canyon prodigyJonathan Wilson on your playlist. The feature is not alwoys on point, but its often pretty impressive.

https ://www d igitaltrends. com/music/apple-m usic-vs-s potify/ 3/6 't'l tutzu.| I Case 1:16-cv-08412-AJN DocumentAppr€ Mus¡c 288-7 vs. sporrry Filed| urgtlat 11/13/17 trenog Page 58 of 61

Furthermore, Spoti! gives you the chance to create, share, and follow playlists of any kind * including those shared by friends - with a simple click, along with expertly curated playlists for any mood or genre you're into to keep things fresh.

As for Apple Music, upon creating ân account users will be prompted to select some of their favorite artists so

the service can get a sense of their t¿stes, Ihe interface for this is a digital ball pit, each ball representing an artist, with users tapping particular balls to indicate artists they like or love, You can also always head back via the Account tab - accessible by tapping the icon in the top right corner of "For You" - to re-select your favorite genres and artists. While it is a visually striking way to dictate music preferences (the pink on a white background is pure Apple-chic), the style stomps on the util¡ty a bit. On mobile devices in particular, the balls quickly clog up the screen, sluggishly bouncing off each other ancl making it ä pain to select more artists.

https ://www.digitaltrends.com/music/apple-music-vs-spotiff/ 4t6 't1t1utzu't t Case 1:16-cv-08412-AJN DocumentAppr€ Mustc 288-7 vs, Spottty FiledI uigital 11/13/17lr6nds Page 59 of 61

Thankfully, once the process is complete, Apple Music does a great job curating playlists to appeal to your preferences, Playlists might be based on style (mellow jazzy hip hop), a particular artist, or even a particular activity like driving. Apple claims the playlists are curated by a "team of experts," This cabal of tastemakers - whoever it conrprises - does a good Job creating varied playlists that are at once familiar yet fresh, like a mixtape you miglrt get from a friend.

The level of individual curation is ìmpressive, with one DT staffer quick to highlight a Behind the Boards playlist he received that encompasses music from audio engíneers who have helped create some of the best music of their time frorn the studio control room. Spotify also offers 'bxpenly-curated" playlists, but Apple Music's playlist selections come from individual DJs on the Apple payroll,

Apple Music's Beats 1 Radio function also plays a major role when it comes to music discovery. lt's refreshing to see Apple move beyond sophisticated algorithms for a human approach to facilitating true music discovery, but Spotify has its own matic at work, and its personalized playlists are only growing.

The bottom line is, Spotiff's harrds-off playlists, especially its fantastic Discover Weekly, give it the edge here. Until Apple Music can compete with this algorithm-based approach, we'll give Spotify the win.

lñ/inner: Spotlfy

Editors' Recommendotions

r Music junkie? Here are the 25 best music apps for consuming and creåting tunes r Breaking the l¿w not your thing? Here are the best free music download sites

r Jam out to a'Hipster Brunch'playlist with Pandora's Featured Playlists

: The 1 00 f,est iPhone apps (October 2017) r An emoji is all you need to find a playlist with new Apple Music Messenger bot

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https ://www. digitallrends.com/music/apple-music-vs-spotiff / 616 Case 1:16-cv-08412-AJN Document 288-7 Filed 11/13/17 Page 61 of 61

CERTIFICATE OF SERVICE

The undersigned hereby certifies that on November 13, 2017, all counsel of record who are deemed to have consented to electronic service are being served with a copy of this document via the Court’s SDNY Procedures for Electronic Filing.

/s/ Steven G. Sklaver Steven G. Sklaver