Spotify Hit With $1.6 Billion Copyright Lawsuit .

As the new year begins, the music industry could be set for an epochal moment. Hopes are running high for the first significant reform of music licensing rules in decades. The coming year may also see Spotify go public. But before any of this happens, the Stockholm, Sweden-based streaming giant must now contend with a massive new copyright lawsuit from Wixen Music Publishing, which administers the song compositions by Tom Petty, Zach De La Rocha and Tom Morello of Rage Against the Machine, The Black Keys' Dan Auerbach, Steely Dan's Donald Fagen, Weezer's Rivers Cuomo, David Cassidy, Neil Young, Sonic Youth's Kim Gordon, Stevie Nicks, and many others.

On Dec. 29, Wixen Music Publishing filed a lawsuit in California federal court that alleges that Spotify is using Petty's "Free Fallin," the Doors' "Light My Fire," and tens of thousands of other songs without a license and compensation. The plaintiff is seeking a damages award worth at least $1.6 billion plus injunctive relief.

Wixen's lawsuit is being revealed here for the first time, but the move will come as hardly a surprise to those who have been paying attention to Spotify's growing copyright problem.

Last May, Spotify came to a proposed $43 million settlement to resolve a class action from songwriters led by David Lowery and Melissa Ferrick. The plaintiffs in that case had alleged that Spotify hasn't adequately paid mechanical licenses for song compositions.

Not everyone was satisfied by the settlement, which must still be approved by a judge.

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