Spotify Technology (SPOT) won a court battle over royalty payments after US District Judge Analisa Torres dismissed a lawsuit alleging that the company violated US copyright laws and reduced its payable royalties through incorrect reporting of the classification of its services.

Judge Torres dismissed the case, filed by music license administrator Mechanical Licensing Collective or MLC, on Wednesday.

In the lawsuit, MLC alleged that Spotify incorrectly reported that its premium subscription service is a "bundled subscription offering" instead of being a standalone "subscription offering." According to MLC, this led to inaccurate reporting of revenue from the service and "significantly reduced" the royalties it paid to musicians and music publishers.

A Spotify spokesperson told MT Newswires that the company is "pleased" with the outcome, which demonstrates that its premium service is "appropriately categorized as a bundle."

Spotify Technology shares were over 2% higher in recent trading.

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