Music publishers have doubled the damages they are seeking in a lawsuit against Peloton bike – with claims increasing from $150 million to $300 million.
The National Music Publisher’s Association (NMPA) first sued the brand behind the at home spinning experience in March this year.
It was initially alleged that Peloton had incorporated in excess of 1,000 songs into its library of workouts, without proper license.
The organisation now claims to have unearthed another 1,200+ songs, including tracks from the likes of Taylor Swift and the Beatles. The damages sought for copyright infringement have increased to $300 million.
NMPA President and CEO David Israelite told Forbes: “Since filing this lawsuit we have now discovered more than double the number of songs for which the plaintiffs’ songwriters were never paid by Peloton.
“The fact that Peloton has gone this long without proper music licenses is astounding,” he added.
Peloton is countersuing the NMPA for anticompetitive behaviour, giving a statement to MarketWatch, which said: “On the eve of court-ordered mediation, NMPA sought to alter the optics around its lawsuit by filing exaggerated new claims prior to the mediation while also transparently timing its filing to capitalize on Peloton’s inability to publicly respond in detail during our quiet period.
“We will continue to defend ourselves against claims made in this matter and look forward to pursuing our counterclaims.”
The ramped up damages costs emerge as Peloton prepares for its initial public offering, setting a target share price between $26 and $29, with the aim of raising over $1 billion via the sale of 40 million shares.
This would double the current estimated value, set by private investors, taking it to about $8 billion.
Between July 2018 and June 2019, Peloton has posted a reported $915 million revenue, alongside losses of $195.6 million with advertising spend ramped up.
Over the last three years, Peloton has spent over $50.6 million on licensing music, an essential component of an enjoyable spin class.
The bikes retail at close to £2,000, and come with an attached screen which plays a selection of spin classes – either live or via a library of sessions.
In December 2018, Peloton received attention from the cycling community, after it issued a cease and desist letter to YouTuber Shane Miller for his use of the word ‘peloton’.