Pandora to pay $90 million to settle copyright lawsuit over hits recorded before 1972

LOS ANGELES, Calif. – Streaming music company Pandora has agreed to pay $90 million to settle a lawsuit brought by major record labels over its use of recordings released before 1972.

The labels, including divisions of Sony, Warner and Universal, had argued that songs such as Aretha Franklin’s “Respect” and the Beatles’ “Hey Jude” are not covered by federal copyright law, but they have been protected in common law by states including New York.

The settlement follows a similar deal in June with satellite radio giant Sirius XM, which agreed to pay $210 million.

Pandora Media Inc.’s settlement gives the Oakland, California, company until the end of 2016 to come to a licensing deal for use of those songs going forward.