( MENAFN ) Spotify, the prominent music streaming platform, is facing legal action in a US federal court for allegedly failing to pay millions of dollars in royalties to songwriters, composers, and publishers. This lawsuit, filed against Spotify's American branch (Spotify USA) in New York on Thursday, was initiated by the Mechanical Licensing Collective (MLC), a non-profit organization responsible for collecting and distributing royalties owed by music streaming services. The lawsuit details that on March 1, Spotify made significant changes to its paid subscription services without prior notice, resulting in an estimated 50 percent reduction in royalty payments to the MLC. This sudden reclassification has had a substantial financial impact on those dependent on these royalties. The MLC emphasized the severity of the issue, stating, "The financial consequences of Spotify's failure to meet its legal obligations are enormous for songwriters and music publishers."