This week, Suno and Udio picked up a new adversary in their copyright fight with independent musicians: Hagens Berman, the law firm that took on the tobacco industry and won a $260 billion settlement.
Meanwhile, the music business mourned Clive Davis, the legendary Arista Records founder, who died this week aged 94, with tributes pouring in from Rob Stringer, Bruce Springsteen, Alicia Keys, Patti Smith, and more.
Elsewhere, Billboard reported that Influence Media Partners has emerged as the winning bidder for Anthem Entertainment’s music assets with an offer of more than $650 million.
Also this week, Suno unveiled its Spark incubator program for independent artists, offering grants and marketing support — but with fine-print terms barring participants from ever portraying the company in “a negative light”.
Plus, ex-Blackstone executive Vlado Spasov launched alternative asset manager Trimontium with $1.5 billion in assets under management, naming music rights among its target assets.
Here are some of the biggest headlines from the past few days…
1. SUNO’S LATEST LEGAL OPPONENT FOUGHT THE TOBACCO INDUSTRY – AND WON A QUARTER OF A TRILLION DOLLARS
Suno and Udio have a new adversary in their copyright fight with independent musicians: Hagens Berman, the law firm that took on the tobacco industry.
The firm has joined forces with Delgado Entertainment Law to represent independent artists whose recordings were allegedly copied without permission to train the two companies’ AI music-generation models.
Hagens Berman announced the move on Monday (June 22), the same day it filed an amended complaint against Udio in the US District Court for the Southern District of New York… (MBW)
2. MUSIC INDUSTRY LEADERS, MEGASTARS PAY TRIBUTE TO CLIVE DAVIS
Clive Davis has been remembered by music industry leaders and the artists he signed, following the executive’s death at the age of 94. Davis, who founded Arista Records and most recently served as Chief Creative Officer of Sony Music Entertainment, died at his home in Manhattan on Monday (June 22).
Sony Music, where Davis held that title until his death, paid tribute through Rob Stringer, Chairman of Sony Music Group and CEO of Sony Music Entertainment… (MBW)
3. INFLUENCE MEDIA EMERGES AS WINNING BIDDER FOR ANTHEM’S MUSIC ASSETS WITH $650M+ OFFER (REPORT)
Influence Media Partners has emerged as the winning bidder for Anthem Entertainment‘s music assets.
That’s according to Billboard, which reported this week that the BlackRock-backed firm offered a little over USD $650 million for the catalog, though the transaction remains unclosed.
Anthem, a Canada-based music rights company, holds recorded masters and publishing royalties from artists including Rush and Timbaland… (MBW)
4. SUNO IS PAYING GRANTS TO INDEPENDENT ARTISTS… SO LONG AS THEY AGREE NOT TO CRITICIZE SUNO
Suno has launched an incubator program for independent artists, offering grants, mentorship, and marketing support to a selected group of unsigned musicians.
The program, called Spark, was unveiled on Thursday (June 25) in a blog post co-authored by Suno Chief Music Officer Paul Sinclair and the company’s Head of Creative Economy and Monetization, Rosie Nguyen.
“Making it as an independent artist isn’t easy,” Sinclair and Nguyen wrote, noting that indie artists often lack “the resources or connections to take the next step.”… (MBW)
5. EX-BLACKSTONE EXEC VLADO SPASOV LAUNCHES $1.5B ALTERNATIVE ASSET MANAGER TRIMONTIUM – MUSIC RIGHTS AMONG TARGET ASSETS
Trimontium, an alternative asset manager founded by former Blackstone executive Vlado Spasov, has launched with $1.5 billion in assets under management, the firm announced last week.
The London-headquartered firm has named music rights among the types of assets it is targeting, although it did not name any specific deal.
According to a press release, since its debut, “Trimontium has executed and now manages multiple complex, bespoke, cross-border transactions across the US and Europe, demonstrating the breadth of the Firm’s platform across corporate capital solutions (blending debt, hybrid, and equity), structured and asset-backed credit, and alternative investments, including music rights…” (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
Music Business Worldwide Weekly Round-Up Summary
In the latest edition of Music Business Worldwide’s Weekly Round-up, the spotlight is on several significant developments within the music industry over the past week. The round-up is supported by BMI, a leading entity in performing rights management, dedicated to supporting songwriters, composers, and publishers.
1. Suno and Udio Face New Legal Challenge
Suno and Udio have encountered a formidable new adversary in their ongoing copyright dispute with independent musicians: the law firm Hagens Berman. This firm is renowned for its successful litigation against the tobacco industry, resulting in a $260 billion settlement. Hagens Berman, in collaboration with Delgado Entertainment Law, is representing independent artists who claim that their recordings were used without permission to train AI music-generation models developed by Suno and Udio. The law firm announced its involvement on June 22, coinciding with the filing of an amended complaint against Udio in the Southern District of New York.
2. Remembering Clive Davis
This week, the music industry mourned the loss of Clive Davis, the iconic founder of Arista Records, who passed away at the age of 94. Tributes poured in from prominent figures in the music world, including Rob Stringer, Bruce Springsteen, Alicia Keys, and Patti Smith. Davis had a distinguished career, most recently serving as the Chief Creative Officer of Sony Music Entertainment. He died at his home in Manhattan, leaving behind a legacy of transformative contributions to the music business.
3. Influence Media Partners Acquires Anthem Entertainment’s Music Assets
Influence Media Partners has emerged as the successful bidder for Anthem Entertainment’s music assets, reportedly offering over $650 million for the acquisition. This information was disclosed by Billboard, highlighting the ongoing transition within the music rights landscape. Anthem Entertainment, based in Canada, boasts a catalog that includes recorded masters and publishing rights from notable artists such as Rush and Timbaland. Although the deal has been announced, it is important to note that the transaction has yet to be finalized.
4. Suno Launches Incubator Program for Independent Artists
Suno has introduced a new initiative called the Spark incubator program, aimed at supporting independent artists through grants, mentorship, and marketing assistance. Launched on June 25, the program seeks to address the challenges that indie musicians face in navigating the music industry. However, the program comes with stipulations: participants are required to agree not to portray Suno in a negative light, raising concerns about the potential implications for artistic freedom and expression.
5. Vlado Spasov Launches Trimontium
Vlado Spasov, a former executive at Blackstone, has launched a new alternative asset management firm called Trimontium, which started with $1.5 billion in assets under management. Based in London, Trimontium aims to invest in various asset classes, including music rights. The firm has already engaged in multiple complex transactions across the US and Europe, focusing on a mix of corporate capital solutions and alternative investments, underscoring a growing interest in music rights as a viable financial asset.
In summary, the music industry is currently navigating significant developments, from high-stakes legal battles involving AI technology and copyright issues to poignant tributes for a legendary executive. The financial landscape is also shifting, with substantial investments in music assets and the introduction of innovative support programs for independent artists. As the industry continues to evolve, these stories highlight the dynamic nature of the music business and the challenges and opportunities that lie ahead.
