Spotify Payouts Terms

Effective date: January, 2 2025

1. Introduction and Eligibility: These terms ("Spotify Payouts Terms") are between you and Spotify, and incorporate the Spotify Terms of Use (as amended from time to time in accordance with its terms) (found here https://www.spotify.com/legal/end-user-agreement/) and any product-specific terms (together, the "Terms"). By signing up for, or otherwise using, the Spotify Payouts service ("Spotify Payouts"), you agree to be bound by the Terms as amended from time to time. You may need to create a profile with Spotify Payouts ("Payouts Profile") in order to use all or part of Spotify Payouts. These Spotify Payout Terms are entered into between you, and Spotify USA Inc., a Delaware Corporation with offices at 4 World Trade Center, 150 Greenwich Street, 62nd Floor, New York, New York 10007 and Spotify AB, of Regeringsgatan 19, 111 53 Stockholm, Sweden, with registered number 556703-7495 (together, as applicable, "Spotify"). To the extent there is any irreconcilable conflict between the Spotify Terms of Use and these Spotify Payouts Terms or any product-specific terms, these Spotify Payouts Terms shall prevail. You must be at least 18 years old to use Spotify Payouts, or you must have a parent or guardian over 18 years old responsible for your payouts via Spotify Payouts.

2. Earnings Balance: Spotify will calculate your aggregate earnings in accordance with any applicable product-specific terms. We may provide you with regular reporting on your total estimated earnings and the basis on which those earnings have been calculated ("Earnings Balance"). You acknowledge that such data is provided "as is", and Spotify does not guarantee that such data will be available error-free, or that mistakes will not happen from time to time. Your Earnings Balance does not constitute an obligation of Spotify to you and is provided for reporting and informational purposes only. You have no ownership or other rights in your earnings until funds are disbursed to you. Your earnings will be paid by Spotify in USD. The Payment Service Provider (as defined below) may convert the payment to the denominated currency of your bank account, with rates and fees for such conversion determined by the Payment Service Provider. Any earnings to which you are entitled through your use of or access to Spotify's services or products—including but not limited to Spotify Payouts, affiliated services and products, and all websites and software applications of Spotify and its affiliates—shall be deemed to have been earned, subject to the nature of the Spotify products available to you, either (a) in the jurisdiction in which you reside, or (b) in the jurisdiction of content consumption or the advertisement was impressed.

3. Payment Service Provider: In order to use Spotify Payouts, you will be required to agree to the terms of such third party payment service provider(s) as may be notified to you by Spotify from time to time ("Payment Service Provider"). Spotify's current Payment Service Provider is PayPal, with terms and privacy policy located at https://pay.hyperwallet.com/hw2web/consumer/page/legalAgreement.xhtml (collectively, the "PSP Terms"). In the event that Spotify changes the Payment Service Provider engaged for Spotify Payouts, we will notify you. You agree to be bound by the terms of such new Payment Service Provider as are notified to you and you acknowledge that Spotify, in accordance with any necessary permissions, may instruct the transfer of any personal data from the existing Payment Service Provider to such new Payment Service Provider as it deems necessary for the continuing provision of the Spotify Payouts service. The Payment Service Provider will provide disbursement services on behalf of Spotify, and will receive and transmit funds from Spotify into your bank account in accordance with the Terms and subject to the PSP Terms. You acknowledge that the settlement of your Earnings Balance into your bank account or any other crediting of the Earnings Balance funds to you by the Payment Service Provider discharges Spotify's relevant payment obligation to you in full and final settlement of the relevant payment obligation for that Earnings Balance. You agree to only use the services in accordance with the PSP Terms and not to use the services for any activity that is expressly prohibited or restricted by those terms. You acknowledge that Payment Service Provider may suspend or terminate the provision of the payment services to you if you do not comply with the PSP Terms. Any obligations relating to the provision of payment processing and fund transfer services are owed to you by the Payment Service Provider, not Spotify. Spotify shall have no responsibility for the Payment Service Provider. You expressly acknowledge and agree that: (a) we are not an agent of the Payment Service Provider and we do not provide or offer payment services on behalf of a Payment Service Provider, or otherwise; (b) we are not, nor should anything in these Terms be construed to imply that we are, acting in any way under a mandate conferred by the Payments Service Provider; (c) we are not an escrow service, money aggregator, money remitter or money transmitter; and (d) we will communicate to the Payment Service Provider all necessary information that is required to provide the services under these Terms, including data relating to your use of Spotify Payouts.

4. Security. In order for Spotify to help keep your account secure, we may require you to activate 2-step verification for your account. Once you reach a certain threshold of earnings, if you haven't yet activated 2-step verification, for your security Spotify may withhold payment until it is activated.

5. Payment: If your Earnings Balance equals or exceeds the Minimum Threshold described below, Spotify will ensure that Payment Service Provider pays your Earnings Balance out to the bank account that you identified in signing up with the Payment Service Provider, minus any applicable Fees and Taxes (as also defined below), within 30 days after the end of each calendar month. Your bank account must be registered in your country of residence or the country where your business is incorporated or otherwise registered.

Without limiting anything in the Spotify Terms of Use, Spotify may instruct Payment Service Provider to withhold payment arising from invalid activity detected by Spotify, including but not limited to erroneous or artificial advertising impressions or other artificial activity using any bot, script or other automated or manual means. Your payment may be delayed while Spotify is investigating invalid activity. If Spotify's investigation ascertains that there is no breach, then Spotify will instruct Payment Service Provider to resume payment. Spotify shall only instruct Payment Service Provider to withhold payment to the extent of any such abuse.

In order for Spotify to cause the Earnings Balance to be paid out, your total calculated earnings in your Earnings Balance must be at least US$10.00 ("Minimum Threshold"). You acknowledge that this Minimum Threshold is subject to change and any such change will be notified to you in advance. In addition to the requirement set out above, if you are new to Spotify Payouts, you will be eligible for your first payout only after 30 days following creation of your Payouts Profile.

In order for Spotify to be able to pay you, you may be required to provide current tax-related information and/or complete certain tax certifications. Where this is required, we will only be able to pay you earnings once your information and/or certification is approved.

6. Fees and Taxes: Your Earnings Balance may be subject to transactional fees as set out in the Fee Schedule ("Fees") and as agreed between you and Spotify, as well as any applicable Indirect Taxes due. Such Fees shall apply to the Earnings Balance before the deduction of any Withholding Taxes (defined below), if applicable. The applicable Fees and Taxes are subject to change. You hereby authorize Spotify to deduct any applicable Fees and Taxes from the Earnings Balance, and, if relevant, for Spotify to charge and account for, collect and remit, or, as applicable, direct the transfer to, the relevant tax authorities any applicable Taxes due. You are responsible for any charges assessed by your bank or payment provider.

Spotify reserves the right to deduct and withhold taxes, duties, charges or assessments from any payment made under or in connection with this Agreement and shall pay you on the amount due after the deduction or withholding, if required by law based on Spotify's judgment ("Withholding Taxes"). If deductions or withholdings of tax have been made, Spotify shall pay the withheld tax to the appropriate tax authority and provide copies of receipts for such withholding tax to you. You are obliged to provide evidence of any tax treaty entitlement that, in Spotify's judgment, satisfies the requirements of the applicable law, as necessary to claim exemption from or reduction of withholding tax.

You represent and warrant that your tax information entered during the creation of your Payouts Profile is correct, complete, and accurate and up to date. In the event of change in your address, country of residence, or country of incorporation or registration, you will update this information in Spotify Payouts in a timely manner. This information will be used to file any tax reporting where legally required. Unless stated otherwise, the Fees that you must pay under these Terms are exclusive of VAT, GST, HST, sales taxes or other similar taxes, duties, charges or assessments ("Indirect Taxes"). Indirect Taxes shall be added on top of Fees as per local legislation. Further, each party shall be solely responsible for collection and remittance to the relevant tax authorities of all Indirect Taxes it is legally obliged to collect and remit, as further described in this Section. For the purpose of these Terms, Indirect Taxes and Withholding Taxes shall collectively be referred to as "Taxes".

7. Indemnity: You acknowledge and agree that the Payment Service Provider imposes certain obligations on Spotify relating to the provision of services by the Payment Service Provider to you. You indemnify and hold Spotify harmless for any damages, costs, losses, or expenses incurred by Spotify in relation to the Payment Service Provider as a direct result of your breach of these Terms or the PSP Terms or you otherwise failing to meet an obligation you owe to the Payment Service Provider under the PSP Terms.

8. Set-Off: You acknowledge and agree that Spotify may set off any amount owing to you against any amount owing by you to Spotify, and you authorize Spotify to set-off any such amounts in its reasonable discretion, including chargebacks against your Earnings Balance that the Payment Service Provider has not recovered from you.

9. Acknowledgements: You represent, warrant and acknowledge that:

a. You have the power and authority to enter into a binding contract with us and are not barred from doing so under any applicable laws;

b. you will at all times comply with all applicable laws, rules, regulations, orders and other enforceable governmental or statutory instruments;

c. you have paid and will pay all applicable tax with respect to any payments made to you under these Spotify Payouts Terms;

d. Spotify is not liable for any action or omission taken by PayPal or which occurs under the PSP Terms;

e. you are responsible for your login details and must take appropriate action to protect your Payouts Profile details and that Spotify is not liable for any loss incurred by you as a result of you failing to take such appropriate action;

f. you have nominated a valid bank account with a financial institution in your country or region, and that payments will be made to the bank account nominated by you when signing up with the Payment Service Provider, or as amended in accordance with the PSP Terms. Your payment may be withheld or delayed if you do not maintain accurate contact and payment information in your Payouts Profile;

g. Spotify will automatically generate a payout statement for each payment made to your nominated bank account based on the information you provide when signing up. You are responsible for reviewing the accuracy of such invoice and the information included. You acknowledge you are responsible for any subsequent reporting requirements, including tax and earnings reporting.

h. Spotify is entitled to rely on communications with you and which originate from any mobile number or email address provided by you to Spotify in accordance with the Spotify Terms of Use.

10. Termination: Spotify may suspend or terminate your Payouts Profile or these Terms because of invalid activity or your failure to otherwise comply with these Spotify Payouts Terms. In the event of termination by Spotify due to invalid or fraudulent activity or breach of any Spotify terms or policies, you will not be entitled to any further payments from Spotify, we may terminate any other Payouts Profile that you may have and you may be prohibited from creating a new account.

These Spotify Payouts Terms will terminate automatically upon termination of the Spotify Terms of Use or your agreement with the Payment Service Provider.

You may terminate these Spotify Payouts Terms and your access to Spotify Payouts at any time by providing Spotify with thirty (30) days' prior written notice. Spotify may terminate and/or modify these Spotify Payouts Terms at any time upon thirty (30) days' written notice to you. Your continued use of Spotify Payouts will constitute your agreement to such modified terms.

Except as set out above, following termination, you acknowledge that Spotify will cause the amount reflected in your Earnings Balance to be paid out to the bank account in your country or region that you identified in signing up for Spotify Payouts, minus any applicable Fees. For the avoidance of doubt, this clause and clauses 3, 5, 6, 7, 9, 10, 11, and 12 survive termination of the Terms. Termination of the Terms will not affect any accrued but unpaid liabilities outstanding at the date of termination of either party.

11. No Agency Relationship: Nothing in these Spotify Payouts Terms will be construed to engage you as an agent, employee, partner, joint venturer or representative of Spotify or its affiliates. For the avoidance of doubt, unless otherwise agreed upon in a separate written agreement with Spotify or its affiliates, you have no obligation whatsoever to furnish any services for or on behalf of Spotify or its affiliates and no payments you receive through your use of or access to Spotify Payouts shall be construed as compensating you for services rendered as an agent, employee, partner, joint venturer or representative of Spotify or its affiliates.

12. Applicable laws: You shall comply with all applicable laws and regulations when using Spotify Payouts.

13. Severability: Unless as otherwise stated, should any provision of these Spotify Payouts Terms be held invalid or unenforceable for any reason or to any extent, such invalidity or enforceability shall not in any manner affect or render invalid or unenforceable the remaining provisions of the Terms, and the application of that provision shall be enforced to the extent permitted by law.

14. Waiver: Any failure by Spotify or any third party beneficiary to enforce these Spotify Payouts Terms or any provision thereof shall not waive Spotify's or the applicable third party beneficiary's right to do so.

15. Interpretation: As used in these Spotify Payouts Terms, the words "include" and "including," and variations thereof, will be deemed to be followed by the words "without limitation." Any capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Spotify Terms of Use.