Yesterday, Universal Music Group (UMG) initiated a significant copyright infringement lawsuit against Believe and its subsidiary TuneCore, seeking damages exceeding $500 million. Here’s an in-depth look at the details of the compelling 34-page complaint and the defendants’ supposed “illegal actions.”
DMN was the first to report on the straightforward legal action immediately following its filing in a New York federal court. To summarize, the comprehensive complaint alleges that Believe and its TuneCore distribution platform failed to adequately vet third-party works that are purportedly infringing, proceeding to distribute these questionable tracks to major digital service providers (DSPs) like YouTube, while also “wrongfully” collecting various royalties.
The alleged infringement embodies a wide array of commercially significant works. UMG’s claim includes tracks from renowned artists such as the Bee Gees, Daddy Yankee, Elton John, Lil Wayne, and Weezer.
Believe’s Alleged Infringement At a Glance: “Modified Versions,” Unauthorized “Remixes,” and More Distributed “Without Any Effective Review to Identify Infringing Copies”
On the distribution front, Believe and TuneCore have “relentlessly pursued the goal of distributing as many tracks as possible,” according to the plaintiffs. Many of the unquestionably infringed tracks in question are described as being “sped up” versions of UMG’s established recordings. The suit highlights this tactic, showing that Believe is aware of such tracks’ popularity on specific digital platforms and their tendency to evade the detection systems used by these services to catch infringing content.
Nevertheless, Believe “has derived a direct financial benefit attributable to the infringement,” capitalizing on terms that “entitle it to retain a percentage of” the streaming royalties generated from these allegedly infringing songs. “The infringing tracks distributed and purportedly licensed by Believe have been streamed, downloaded, or reproduced in videos hundreds of millions of times across the digital music ecosystem on a wide variety of platforms,” UMG contends.
Content ID Shenanigans? Believe “Compounded” Alleged “Unlawful Conduct” via False Claims on YouTube, Lawsuit Shows
Consequently, the lawsuit claims that Believe has forced Universal Music “to incur the burden and expense of routinely contesting Believe’s incorrect claims of ownership.” According to Universal Music, “Believe did not even contest” the legitimate claims in a multitude of instances. However, in those situations, the defendants allegedly proceeded “to distribute and purport to license the exact same tracks to other digital music services,” subsequently continuing “to collect royalties on those tracks from these other providers,” as detailed in the suit.
Believe Fires Back Against Universal Music’s Lawsuit: “We Strongly Refute These Claims”
DMN reached out to Believe, which previously appeared poised to become a subsidiary of Warner Music Group, and received a straightforward response through a company spokesperson. “We have developed robust tools and processes to tackle this industrywide challenge, working collaboratively with partners and peers and will continue to do so. We have been at the forefront of the digital music ecosystem for nearly 20 years, supporting the development of independent artists and labels, and have been awarded Tier 1 status and included in the Preferred Partner Program across all music stores,” the company asserted, positioning itself as a strong defender of its practices amidst the ongoing legal challenges.
**Interview with Sarah Mendez, Music Industry Analyst**
**Interviewer:** Thank you for joining us today, Sarah. We just heard about Universal Music Group’s lawsuit against Believe and TuneCore for over $500 million. What do you think are the broader implications of such a significant legal action?
**Sarah Mendez:** Thank you for having me. This lawsuit is indeed monumental for several reasons. First, it highlights the ongoing tensions between traditional music labels and digital distribution platforms. UMG’s decision to take legal action reflects their frustration with how these platforms manage content and the royalties associated with it. If UMG is successful, this could set a strict precedent for how digital distributors vet the music they release.
**Interviewer:** The complaint mentions that Believe failed to properly vet third-party works, allowing potentially infringing tracks to be distributed widely. How might this impact independent artists who rely on platforms like TuneCore?
**Sarah Mendez:** That’s a great question. If the lawsuit leads to stricter regulations or changes in how third-party content is managed, it could either improve the protection of original works or complicate the landscape for independent artists. While some may benefit from stricter enforcement against infringing content, others might find it harder to get their music noticed in a more regulated environment. It’s a double-edged sword.
**Interviewer:** UMG claims that Believe distributed modified versions and unauthorized remixes of popular songs. How do you see this affecting consumer behavior towards digital music platforms?
**Sarah Mendez:** This will certainly stir up conversations about what consumers consider acceptable in music consumption. If fans become aware that they may be listening to unauthorized remixes or altered versions of tracks, it could change their trust in the platforms. This kind of controversy might push consumers to seek out more reputable sources for music, reinforcing the importance of adhering to copyright laws in the industry.
**Interviewer:** UMG is seeking a staggering sum of $500 million. What could this mean for Believe and their future operations?
**Sarah Mendez:** A financial blow of that magnitude could be crippling, especially for a company like Believe, which thrives on digital distribution. They may have to reassess their business model and invest in better compliance and content verification processes to avoid similar issues in the future. The lawsuit may ultimately serve as a wake-up call for the entire industry to prioritize copyright adherence.
**Interviewer:** Lastly, do you think we’ll see other major labels following UMG’s lead in pursuing legal actions against digital distribution platforms?
**Sarah Mendez:** Absolutely. This case could inspire other labels to reconsider their own agreements with digital distributors. If UMG’s suit is successful, we might see a wave of litigation aimed at enforcing stricter compliance with copyright laws across the music industry. It could be the catalyst for significant changes in how music is distributed online.
**Interviewer:** Thank you, Sarah, for your insights on this pressing issue in the music industry. It will be fascinating to see how this lawsuit unfolds.
**Sarah Mendez:** Thank you for having me! I’m looking forward to seeing the developments as well.
