Sony Music sues Napster in a major federal lawsuit filed on 1 August. The music giant is demanding $9.2 million (R170.2 million) in unpaid royalties and accuses Napster of ongoing copyright infringement. The case was filed in the U.S. District Court in Manhattan and centres on Napster’s breach of multiple licensing agreements and its continued unauthorised streaming of Sony’s music catalogue after the termination of their contract.
Sony Music alleges that Napster stopped paying royalties more than a year ago, leading to the termination of their licensing agreement in June 2025.
The issue escalated after Napster’s acquisition by Infinite Reality in March 2025 for $207 million (R3.72 billion). That acquisition activated Sony’s right to cancel the contract. Sony initially waived that right, relying on Napster’s written commitment to settle the outstanding royalties. However, according to court documents, Napster failed to deliver on that promise.
Napster accused of ongoing unauthorised use
Napster allegedly continued to stream Sony’s catalogue even after the agreement terminated. The lawsuit claims hundreds of Sony-owned sound recordings and music videos remained available on Napster’s platform. Sony argues this continued use violates U.S. copyright law and directly breaches the terms of the former licensing agreement.
The unauthorised streaming not only breaches the law but, according to Sony, also undermines the company’s investment in new music creation. The lawsuit seeks immediate injunctive relief to stop all unauthorised use, and it claims damages under both licensing and federal copyright statutes.
Napster’s history of delayed payments raises concerns
Napster, once infamous for illegal file-sharing, reinvented itself as a legal streaming service in 2016. By 2020, it had amassed over 1 million monthly users. However, issues around royalty payments have persisted. In January 2025, Billboard reported that Napster had delayed payments to several distributors for up to a year.
In June 2025, SoundExchange filed a lawsuit against Napster, alleging over $3.4 million (R61.1 million) in unpaid royalties related to the Sonos Radio service. Sony’s legal filing refers to these earlier incidents as part of a broader pattern of non-compliance. The label argues that Napster repeatedly failed to meet its financial and legal obligations to rights holders.
Legal implications for the streaming industry
Sony’s lawsuit seeks both financial damages and legal action to prevent further copyright violations. The outcome could set a new legal precedent for post-acquisition licensing enforcement in digital media. Legal experts believe Sony may also pursue statutory damages under the U.S. Copyright Act.
A spokesperson for Napster has stated to Billboard, saying, “We deeply value our relationships with all of our partners. We remain committed to rebuilding Napster’s relationships with all of the major labels and are hopeful for a swift and amicable resolution.” However, the legal battle may affect investor confidence and impact Infinite Reality’s broader media and streaming operations.
Sony’s legal team stressed the need for strong accountability in digital music licensing. As the case unfolds, the music industry will be watching closely for signals on how courts may handle similar disputes in the future.
