Spotify hit with $1.6 billion copyright lawsuit

Scott Beale / AP

Wixen Music Publishing, which manages songs by Tom Petty, Stevie Nicks and more, is suing Spotify for $1.6 billion for allegedly using thousands of songs without proper licensing, Variety reports. It's also seeking injunctive relief for damages.

Why it matters: Spotify has been hit with numerous complaints and lawsuits from the music industry in the past for not giving music creators a fair share of revenue, and for distributing music without proper licenses. This suit is one of the biggest, and it's happening as Spotify prepares to go public through a direct listing in the near future.