SEATTLE, May 5, 2019 /PRNewswire/ -- The following statement is being issued by Rhapsody International, Inc. regarding a class settlement.
A settlement has been reached with Rhapsody International Inc. ("Rhapsody") in a case known as Lowery et. al. v. Rhapsody International, Inc. et al. concerning the mechanical royalties of certain copyright holders. Plaintiffs allege Rhapsody unlawfully reproduced and distributed certain copyrighted musical compositions to Rhapsody's users via its music streaming service. Rhapsody denies the allegations and does not admit liability in agreeing to the settlement.
WHO IS A CLASS MEMBER?
You may be a class member if you are the owner of mechanically distributed and/or reproduced rights in Qualifying Registered Works that were made available or played on the Rhapsody music service in the United States from March 7, 2013 (registered with the U.S. Copyright Office on or before March 7, 2016) to March 21, 2019 and Qualifying Unregistered Works that were not registered with the U. S. Copyright office.
WHAT DOES THE SETTLEMENT PROVIDE?
For each validly claimed Qualified Registered Work that was played at least once in its entirety, Rhapsody will pay up to $35 (reduced pro-rata where there is more than one claiming rights holder for the same work or the total amount of claims exceeds a set cap of $10,000,000). To be eligible, the work: (a) must have been registered with the Copyright Office; (b) for songs with a street release date prior to March 7, 2016, the copyright must have been registered prior to March 7, 2016; (c) for songs with a street release date after March 7, 2016, the copyright must have been registered within three months of the street release date; and (d) must be one for which Rhapsody did not have a voluntary or compulsory license.
For each validly claimed Qualified Unregistered Work that was played more than 24 times in its entirety by someone other than the copyright holder and for which Rhapsody did not have a voluntary or compulsory license, Rhapsody will pay $1.00 (reduced pro rata where there is more than one claiming rights holder for the same work or the total amount of claims exceeds a set cap of $10,000,000).
The cap referenced above could increase up to $20 million under certain circumstances. For more information about those circumstances, please see paragraphs 82-89 of the Settlement Agreement.
The Settlement Website below provides complete instructions that you need to follow when filing a claim.
WHAT ARE MY OPTIONS?
You must submit a claim online by December 31, 2019 or by mail postmarked no later than December 31, 2019 to receive a payment. You can opt-out of the class and keep your right to pursue your own lawsuit about these claims by mail, postmarked by July 5, 2019. You can also object to the settlement by mail, postmarked by July 5, 2019. For details on how to opt-out, object, or to file a claim, please visit www.RhapsodyNOIClassAction.com or contact the Claim Administrator. If you do nothing you will not receive a payment and you will be bound by the decisions of the Court.
COURT HEARING AND ATTORNEYS' FEES
The Court will hold a hearing on March 13, 2020 at 9:00 a.m. PT to consider whether to approve the settlement. If the settlement is approved, the attorneys for the class have represented to the Court that they intend to ask for an award of attorneys' fees, costs and expenses between $5,511,878 and $5,661,877.50, and potentially an additional $75,000-$150,000 in fees, costs and expenses incurred between now and the Court's approval. The attorneys for the class have also represented they will seek class representative payments of $2,500 for each of the named plaintiffs. You may attend the hearing, but you do not have to. Plaintiffs' Motion for Attorneys' Fees and Costs will be posted on the website after it is filed.
This is only a summary. For more information, please visit: www.RhapsodyNOIClassAction.com, or contact the Claim Administrator by calling 1-833-253-8061 or by writing to Lowery v. Rhapsody, c/o Claim Administrator P.O. Box 58232, Philadelphia, PA 19102-8232.
SOURCE Rhapsody International, Inc.