Spotify​ has been hit with a billion dollar lawsuit and is being accused of using tens of thousands of songs on its service without license or compensation. 

According to The Hollywood Reporter, Wixen Music Publishing, which administers song compositions for the likes of Tom Petty, Neil Young and Rage Against The Machine's Zach De La Rocha and Tom Morello,  filed the lawsuit last Friday in a California federal court.

The company is seeking damages worth at least $US1.6 billion plus injunctive relief. 

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"Spotify brazenly disregards United States Copyright law and has committed wilful, ongoing copyright infringement," Wixen's complaint reads.

"Wixen notified Spotify that it had neither obtained a direct or compulsory mechanical license for the use of the Works. For these reasons and the foregoing, Wixen is entitled to the maximum statutory relief."

The complaint also alleges that up to 21% of Spotify's 30 million song catalogue are unlicensed.

Spotify was dealt three similar lawsuits last year and in September, the streaming giant's settlement offer regarding copyright dispute against names such as The Black Keys' Dan Auerbach and Weezer's Rivers Cuomo was rejected.