Spotify was sued by Wixen Music Publishing Inc last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and the Doors, without a license and compensation to the music publisher.
Wixen is seeking damages worth at least $1.6 billion along with injunctive relief.
Spotify failed to get a direct or a compulsory license from Wixen that would allow it to reproduce and distribute the songs, Wixen said in the lawsuit, filed in a California federal court.
Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency.
Spotify has not commented.