(Bloomberg) -- Spotify is buying rights company Loudr in a move to beef up its ability to track and pay royalties to music publishers.
The move comes a day after the House Judiciary Committee approved legislation that would revamp digital licensing rules. Loudr will contribute to Spotify’s "continued effort towards a more transparent and efficient music publishing industry for songwriters and rights holders," Spotify said on its website. Loudr will add a team of publishing specialists and technologists to the company, which may aid the streaming service in navigating conflicts with artists over pay.
"This acquisition is clearly a direct response to the lawsuits and other risks Spotify is enduring," said Songtrust co-founder Joe Conyers. Loudr "is tackling the impossible task of determining who companies like Spotify should actually pay for certain songs."
Loudr was founded in 2013 and offered digital music providers services to identify, track and pay royalties to music publishers.
The world’s three biggest pop stars -- Taylor Swift, Adele and Drake -- had previously restricted online access to their new works to paid services and rang up big sales as a result. The Music Modernization Act, which would create a new royalty collecting organization, sailed through the House panel on April 11.
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