Music streaming platform Spotify has been hit with a $US1.6 billion ($2.2 billion) lawsuit from Wixen Music Publishing for allegedly using thousands of songs, including those of Tom Petty, Neil Young and The Doors, without a license and without providing proper compensation to the music publisher or artists.

Wixen, an exclusive licensee of songs such as "Free Fallin" by Tom Petty, "Light My Fire" by the The Doors, "(Girl We Got a) Good Thing" by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $US1.6 billion along with injunctive relief.

Spotify is reproducing and distributing the songs, but has failed to get a direct or a compulsory license from Wixen that would allow it to do so, 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, which was "ill-equipped to obtain all the necessary mechanical licenses".

Spotify has been plagued by complaints and legal action from the music-publishing industry, which widely feels that labels are getting the fairer share of royalties from the company.

In May, the company proposed a $US43 million ($A60 million) settlement to resolve a class action suit — from a collective of songwriters including David Lowery and Melissa Ferrick — alleging it failed to pay royalties for some of the songs it makes available to users. In September the proposition was lambasted as being inadequate by a group of songwriters and actors, and more lawsuits ensued.

Wixen's lawsuit says the proposed settlement "does not adequately compensate Wixen or the songwriters it represents".

Spotify filed court papers on Friday that questioned whether Wixen's clients had authorised the company to take that action, claiming that it had given its clients only a brief opt-out period before their names would be included in the suit.

In a statement released on Tuesday, company president Randall Wixen clarified that it, and its clients, are not joining the class-action suit.

This was "in part because of their belief that the proposed settlement is inadequate, because too much of the settlement is going to legal fees, and because the terms of the go-forward license in the settlement are not in their long-term best interests", the statement said.

Instead, the company says it "was and is desirous of sitting down with Spotify to work out an amicable settlement for its past infringements and unlicensed uses, and seeks to work out a go-forward license which is fair to all parties".

Spotify declined to comment. The company, which is planning a stock market listing this year, has grown around 20 per cent in value to at least $US19 billion in the past few months.

Agencies