Spotify has been hit with a $1.6 billion lawsuit

Headphones are seen in front of a logo of online music streaming service Spotify in this

Spotify, which has been valued at anywhere from $8 billion to $16 billion, has maintained its dominance as streaming rapidly grows and transforms the recorded music market.

Wixen Music Publishing, which owns songs by Tom Petty and Neil Young, is suing Spotify for $1.6 billion.

Wixen, an exclusive licensee of songs such as "Free Fallin" by Tom Petty, "Light My Fire" by the Doors, (Girl We Got a) Good Thing by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $1.6 billion along with injunctive relief. In May, it reached an agreement to settle a pair of two similar lawsuits under which Spotify said it would set up a $43.45 million fund to compensate songwriters. The company has not responded to requests by Billboard, but the outlet does note that it could maintain defenses Spotify outlined in previous lawsuits. He argued that the class action settlement was an "empty gesture" and claimed that the streaming service had failed to provide "compulsory license to make a mechanical reproduction of a musical composition".

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Another lawsuit was brought against Spotify previous year, spearheaded by Bob Gaudio - a founding member of Frankie Valli and the Four Seasons. "Wixen has and, to the extent not yet effected, will opt out the Works from the Proposed Settlement".

Even if unsuccessful, lawsuits amount to a headache for Spotify as the company considers going public.

Wixen also alleges Spotify has "knowingly, intentionally, and repeatedly" reproduced those songs over the Internet to California residents. Wixen claims that Spotify has used their copyrighted material without a license.

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