It’s raining lawsuits!
This week, Universal Music Group sued DistroKid, the world’s biggest music distributor by volume, accusing it of deceptive trade practices, copyright infringement, and flooding platforms with AI-generated “slop.”
Meanwhile, today (September 18), MBW learned that UMG and Sony Music Group are jointly suing Suno for a second time – alleging that the AI platform’s new V6 model is “fruit from the same poisoned tree.” Some $9 billion in damages might be at stake.
Elsewhere this week, Believe and TuneCore pledged not to feed artists’ music to Suno without an explicit opt-in, insisting that “the artist must consent first, period.”
Plus: Fever, owner of DICE, raised $250 million in a round led by EQT, valuing the live-entertainment company at approximately $5.2 billion.
Here are five of the biggest headlines from the past few days…
1. Universal Music Group sues DistroKid, accusing it of ‘unlawful practices’ and ‘flooding platforms with AI-generated slop’
Universal Music Group is suing the world’s biggest music distributor by volume, DistroKid.
In its lawsuit, UMG, the world’s largest music rights company, alleges that DistroKid has “engaged in both deceptive trade practices and blatant copyright infringement”.
Key parts of UMG’s suit center on DistroKid’s alleged involvement with AI-made music. (MBW)
2. Universal and Sony sue Suno for a second time, claiming platform’s v6 models are ‘the fruit of the same poisoned tree’
Universal Music Group and Sony Music Entertainment have sued Suno for a second time.
The joint complaint, filed on Friday (September 18) in Boston federal court, accuses the AI music company of copying 60,202 of the labels’ sound recordings, without a license, and using them to build the models that run its music generation service.
The new filing against Suno, obtained by MBW, can be read in full here. (MBW)
3. DICE owner Fever raises $250M led by EQT, at a $5.2B valuation, in ‘largest ever’ round for a live-entertainment tech company
Live-entertainment platform Fever has raised USD $250 million in a primary equity financing round.
The round was led by EQT, a new investor in the company, with participation from fellow newcomer Baillie Gifford, existing backer Point72 Private Investments, and other existing shareholders.
Fever, which owns UK-headquartered ticketing platform DICE, announced the financing on Thursday (September 17), describing it as “the largest ever for a live-entertainment tech company.” (MBW)
4. Believe and TuneCore won’t feed music to Suno without giving artists choice to opt in: ‘The artist must consent first, period.’
It’s been a big couple of weeks for Suno.
Last Tuesday (September 8), the gen-AI firm announced a new licensing agreement with Believe, adding to existing deals with Warner Music Group and BMG.
The next day, Suno introduced its V6 models, which the firm says were trained from scratch on a collection of copyrights from licensed partners. (MBW)
5. Apollo invests $1.25B in BMG subsidiary behind legacy Concord bonds, taking a minority stake
Apollo Global Management has provided a USD $1.25 billion equity investment tied to BMG, in a deal that allows the music company to repay debt secured against Concord‘s catalog.
Apollo announced the transaction on Thursday (September 17), a little over two weeks after BMG and Concord completed their merger on September 1 – a move which formed a combined company operating under the BMG brand.
Apollo-managed funds and affiliates have acquired what Apollo describes as a “noncontrolling interest” in a subsidiary of BMG that holds the legacy Concord asset-backed securities, backed by a catalog of over 1 million songs. (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
Welcome to the latest edition of Music Business Worldwide’s Weekly Round-up, where we highlight the five most significant stories from the past week in the music industry. This week’s round-up is supported by BMI, a leading global organization in performing rights management that advocates for songwriters, composers, and publishers.
Major Lawsuits in the Music Industry
1. Universal Music Group vs. DistroKid
Universal Music Group (UMG), the largest music rights organization globally, has initiated legal action against DistroKid, the world’s largest music distributor by volume. UMG’s lawsuit accuses DistroKid of engaging in deceptive trade practices and copyright infringement, particularly focusing on the distribution of AI-generated music, which UMG refers to as “slop.” This lawsuit highlights ongoing concerns about the impact of artificial intelligence on music distribution and copyright integrity.
2. Universal and Sony Music Sue Suno Again
In a related matter, UMG and Sony Music have filed a second lawsuit against the AI music platform Suno. The latest complaint, lodged in a Boston federal court, alleges that Suno has unlawfully copied over 60,000 sound recordings from UMG and Sony without proper licensing. The complaint describes Suno’s actions as “the fruit of the same poisoned tree,” suggesting that the platform’s practices are fundamentally flawed and exploitative of the music creators’ rights. The stakes are high, with potential damages reaching approximately $9 billion.
Developments in Music Distribution and Investment
3. Fever Secures $250 Million Investment
Fever, the parent company of the ticketing platform DICE, announced a significant funding round, raising $250 million led by EQT, a new investor. This financing, characterized as the largest ever for a live-entertainment technology company, values Fever at around $5.2 billion. The investment is expected to bolster Fever’s capabilities in the live entertainment sector, particularly as the industry continues to recover and evolve post-pandemic.
4. Believe and TuneCore’s Stance on AI Music Usage
In light of the controversies surrounding AI in music, Believe and TuneCore have made a public commitment not to distribute artists’ music to platforms like Suno without explicit consent from the artists. This decision underscores a growing trend in the industry where companies prioritize artist rights and consent in the face of emerging technologies. The statement reflects a broader call for ethical practices in the use of AI-generated content, emphasizing that artists must have control over their own work.
Investment in BMG
5. Apollo Global Management Invests in BMG
Apollo Global Management has announced a substantial $1.25 billion equity investment in a subsidiary of BMG, specifically targeting legacy Concord bonds. This deal is part of a strategic move following the recent merger between BMG and Concord, which created a consolidated company operating under the BMG brand. The investment allows BMG to repay debts associated with Concord’s catalog, which includes over a million songs. Apollo describes its stake as a noncontrolling interest, highlighting the firm’s confidence in the future of music assets and the potential for growth in the sector.
Conclusion
This week’s news is dominated by significant legal battles and strategic investments in the music industry, reflecting the ongoing tensions between traditional music rights and the rise of AI technologies. As companies navigate these challenges, the importance of artist rights and ethical practices in music distribution remains a focal point. With substantial investments flowing into live entertainment and music tech, the industry appears poised for transformation as it reconciles the demands of innovation with the foundational principles of music ownership and creation.
