Pandora’s attempt to leverage a horse racing legal precedent in its royalties dispute with the MLC has been dismissed.
The Mechanical Licensing Collective (MLC) has rejected Pandora’s legal maneuver to apply a constitutional precedent from the horse racing industry in its ongoing lawsuit over mechanical royalties. Pandora aimed to challenge the MLC’s authority to sue by referencing a ruling that limited regulatory power in a different context.
Pandora’s argument centered on a constitutional precedent that questioned the regulatory authority of a horse racing commission. The company suggested that this precedent should similarly restrict the MLC’s ability to enforce royalty collections.
The MLC, however, dismissed this argument, maintaining that the horse racing case was not applicable to the music industry. The organization emphasized its statutory mandate to manage and distribute mechanical royalties on behalf of songwriters and publishers.
This legal battle is part of a broader conflict between digital streaming platforms and rights organizations over the distribution of royalties. The outcome could have significant implications for how digital music services compensate artists and rights holders.
While Pandora’s strategy was unsuccessful, the case continues to unfold, with both parties preparing for further legal proceedings. The MLC remains firm in its stance to protect the interests of its members.
The dispute highlights ongoing tensions in the music industry as it adapts to digital distribution models. The MLC was established to ensure fair compensation for creators, and its authority is crucial in maintaining industry standards. As streaming services seek to minimize costs, the resolution of this case could set a precedent for future negotiations and legal frameworks.











