Spotify Technology SA won dismissal of a lawsuit alleging it made a change to its premium service that cheated songwriters out of royalties.

Spotify defeated a lawsuit from the Mechanical Licensing Collective accusing it of unfairly cutting royalty rates via its audiobooks-music 'bundle.'

Spotify convinced a New York federal judge on Wednesday to dismiss a lawsuit that accused the streaming service of underpaying songwriting royalties for tens of millions of songs.

The legal claim was filed last May in the United States District Court for the Southern District of New York. The action by the MLC sought recovery of what it claimed were unpaid royalties for songwriters and publishers due under the compulsory mechanical blanket licence obtained by Spotify for the US.