On Thursday, Spotify, the largest music streaming service in the world, said that it is set to acquire a provider of licensing technology that is called Loudr.fm. The company is based in San Francisco. The said acquisition is aimed to help Spotify locate the songwriters and pay them the royalties that are due for them.
The said acquisition will help Spotify look for the artists and make sure that they get paid for their copyrighted work, an issue which, if left unaddressed, leaves the company open to lawsuits.
The financial terms of the said deal were not revealed.
Loudr was established way back in 2013 to simplify the process for musicians who perform songs by other artists publicly to identify, track and pay the royalties that were owed to music publishers. These may include cover versions, remixes, medleys, or samples of songs.
In a blog post, the company revealed that the operation of Loudr would relocate to the offices of Spotify that are located in New York.
Earlier this month, Spotify was listed on the New York Stock Exchange. It has made at least ten small, usually technology-focused acquisitions during the recent years to ensure the improvement of its streaming services.