Peloton and NMPA Settle, Dismiss Copyright Infringement Lawsuit

ONE TIME USE ONLY -Peloton logo on the company's stationary bicycle -AP Shutterstock-H 2020
Jeff Chiu/AP/Shutterstock

Peloton and the National Music Publishers' Association (NMPA), the trade association representing all American music publishers and their songwriting partners, on Thursday announced that they have reached an agreement to fully settle the litigation brought last year by 14 NMPA members.

The $370 million lawsuit, originally filed by the publishers in March, alleged that Peloton — which manufactures exercise bikes that stream instructor-led fitness classes via built-in touch screens — had used more than 1,000 copyright musical compositions without obtaining needed licenses. In its April 30 counterclaim, Peloton accused the publishers of anti-competitive behavior by engaging in a "coordinated effort" to fix prices and alleged that the NMPA had conspired to prevent it from striking deals with the individual companies. A judge dismissed Peloton’s counterclaims in January.

Per the announcement, Peloton and the trade association have entered into a joint collaboration agreement to "work together to further optimize Peloton's music licensing systems and processes."

"We are pleased the music publishers and their songwriter partners in this case have reached a settlement with Peloton that compensates creators properly and sets forth the environment for a positive relationship going forward," said NMPA president and CEO David Israelite. "Peloton is an innovative company, and we are impressed with the company's investment in technology and commitment to delivering a powerful, authentic music experience. We look forward to our ongoing collaboration to find solutions that will benefit all songwriters."

Added Peloton's head of music Paul DeGooyer: "Music is an important part of the Peloton experience, and we are very proud to have pioneered a new revenue stream for recording artists and songwriters. We're equally proud to partner with David and the NMPA to ensure that songwriters are, and continue to be, fairly compensated. With the NMPA's input, we are confident our proprietary, state-of-the-art music system will provide an even more dynamic fitness experience for our millions of members worldwide."

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