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Spotify acquires Loudr to try to make sure musicians get paid

The streaming music company, facing copyright infringement accusations, gets a better way to track what songs it's playing so it doesn't shortchange music publishers.

Spotify CEO Daniel Ek

Spotify CEO Daniel Ek

Sarah Tew/CNET

Spotify has acquired Loudr, a company with technology designed to identify music available online so publishers can get paid for it.

The streaming-music specialist announced the Loudr acquisition Thursday, saying it will help "foster a more open, streamlined and modern music publishing landscape." Specifically, Loudr's team will contribute to Spotify's continued efforts towards a more transparent and efficient music publishing industry for songwriters and rights holders."

Spotify is under pressure to ensure musicians and publishers get paid properly. Wixen Music Publishing, which licenses songs on behalf of Tom Petty, Neil Young, The Doors and others, sued Spotify for copyright infringement in January and wants to be paid $1.6 billion in damages.

Spotify started offering its stock for public sale earlier in April. Its share price opened at $165.90, but midday Thursday, it was trading at $148.75.

The company didn't disclose terms of the Loudr deal.

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