The deal between independent music licensor Merlin and German streaming service Simfy has been cut short with a demand to take down Merlin members' content following a dispute over royalties.
Hypebot reports that Merlin made the demand to taked down and delete all member content immediately following discussions with the company's new management that led to Merlin CEO Charles Caldas declaring: "We have no confidence that the new ownership of the business understands the value of Merlin's repertoire or intends to honour the terms of the agreement on equity."
This follows Simfy failing to report royalties over the summer months. It is understood that most payments have now been made but the deal between the two parties has been severed six months prior to expiration.
Merlin is also taking legal action against Spotify regarding the matter.
Caldas explained further: "We have recently tried to engage [Simfy's] new management in a discussion about the equity interest Merlin was granted in the company.
"These discussions culminated last week in the new CEO contacting us to make clear that he considers the Merlin relationship insignificant to Simfy's business (although we have a market share on the service well in excess of 12%)... last week's fruitless discussions made it clear that the best option for Merlin was termination of the agreement.
"We have also reserved all of Merlin's rights in relation to the equity issue referred to above and have appointed a German law firm to represent us in this action."