As the result of a lawsuit involving record label giants Universal Music Group, Capitol Records, Sony Music Entertainment and ABKCO Music & Records, Pandora will be shelling out $90 million in royalties owed over unauthorized usage. The case involved a law regarding recordings from before 1972, the copyrights of which were handled at a state level versus the federal handling of copyrights after 1972.

An oversight of this rule resulted in Pandora failing to secure separate licensing agreements that existed for recordings pre-1972.

The suit comes as a hit to the streaming service, who had previously reported losses of nearly $86 million in the third quarter of the year. Pandora's CEO Brian McAndrews commented on the settlement.

"We pursued this settlement in order to the move the conversation forward and continue to foster a better, collaborative relationship with the labels."

The settlement is a show of good faith to the labels and will give Pandora a chance to secure deals for the old licenses.

[H/T: NME]

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