I love random folk etymologies, especially when they posit sinister conspiracies along the way -- thanks for the concise correction. Wikipedia confirms on both counts:
According to Ek, the company's title was initially misheard from a name shouted by Lorentzon. Later they conceived a portmanteau of "spot" and "identify".
It also kinda blows my mind how common it is to listen to a ton of Spotify without paying, NGL! It just seems like such an absurd value proposition to me, even now as it matures from its growth days. All music??
In any case they have an agreement with copyright holders. Anna Archive does not.
IP laws are broken, keep extending protection, and do not prevent distribution exclusivity.
I could sell a license to Bob who can sell my arts to you. But I won't give a license to Alice to even be able to enjoy the art for the fee I charged Bob, and I can tell Bob to do the same and not give it away to Alice at any cost. The law would say that's fine, and let's even arrest Bob if he ever sells to Alice.