Fraudulent Royalty Scheme Sparks Investigation at PPL
December 20, 2024
The U.K. music licensing society, PPL, is facing a criminal investigation after uncovering fraudulent royalty claims linked to suspicious member accounts. An internal investigation led to the dismissal of an employee, and the Metropolitan Police are now probing the alleged embezzlement, which may have siphoned around £500,000 ($625,000) since 2016.
The scheme was reportedly discovered when legitimate artists attempted to register as PPL members. Fraudsters allegedly posed as unregistered artists to claim royalties over several years. PPL is working to rectify the impacted accounts but has declined further comment due to the ongoing investigation.
This incident adds to a growing list of fraud cases in the music industry, including recent lawsuits targeting distribution companies and individuals exploiting streaming platforms. Efforts like the “Music Fights Fraud” task force and updates to royalty systems by Spotify and Deezer have been launched to reduce such fraudulent activity.
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Tags: Royalties, Fraud
Spotify Hits Back at Rapper Drake’s Lawsuit, Denying Claims of Streaming Manipulation
December 20, 2024
Spotify has continued to strongly refute rapper Drake’s accusations of colluding with Universal Music Group (UMG) to artificially boost Drake’s public rival Kendrick Lamar’s song “Not Like Us.” The rapper alleges a conspiracy involving bots, payola, and reduced licensing fees to promote Lamar’s track, which was part of their ongoing feud. In a Manhattan court filing, Spotify called the claims “false,” “speculative,” and a misuse of the legal system, asserting that no evidence supports the allegations.
Spotify criticized Drake for employing a “pre-action” petition for discovery, arguing that it bypasses standard legal procedures and relies on “far-fetched” claims. Spotify’s VP of Music emphasized the company’s robust anti-stream manipulation measures, including removing artificial streams and withholding royalties.
Drake’s legal team maintained that Spotify and UMG should comply with discovery if they have “nothing to hide.” The case also includes a related lawsuit in Texas, where Drake accuses UMG of defamation. UMG has dismissed the allegations as “offensive and untrue,” and has not yet responded in court.
The legal actions mark an unprecedented escalation in the feud between Drake and Kendrick Lamar.
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Tags: Streaming, Fraud
UMG Settles Trademark Dispute with Republic Music Investment Platform
December 19, 2024
Universal Music Group (UMG) has settled its trademark lawsuit against the Republic music investment platform, which allows users to invest in music royalties through NFTs. UMG had accused Republic, owned by OpenDeal Inc., of causing consumer confusion with Republic Records, its prominent music label, home to artists like Taylor Swift and Drake. However, a 2022 court ruling indicated UMG would struggle to prove its claims, as the judge found minimal evidence of potential confusion.
The settlement resolves a case that had been largely on hold for over a year during negotiations. Terms of the agreement were not disclosed. Republic launched its music investment feature in 2021, prompting UMG to file the lawsuit, citing potential brand misrepresentation. Despite UMG’s concerns, the judge ruled that the companies targeted different consumer groups and that overlap was speculative.
This resolution concludes a two-year legal battle without forcing OpenDeal to rebrand its music platform.
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Tags: Trademark, Settlement
Rock artist Johnny Ramone’s Widow Wins Arbitration in Rock Band Ramones Legacy Feud
December 11, 2024
Linda Cummings-Ramone, widow of Johnny Ramone, has prevailed in arbitration against Mickey Leigh, Joey Ramone’s brother, over control of Ramones Productions Inc. (RPI), the corporate entity managing the band’s legacy. An arbitrator ruled that Leigh’s manager, David Frey, must be removed as a director of RPI for breaching fiduciary duties, including greenlighting a Netflix biopic based on Leigh’s memoir without required approval.
The arbitrator criticized Frey for fostering dysfunction and harming the Ramones brand, citing incidents like scuttling a high-profile ceremonial pitch at a Mets game. Frey denied the allegations and criticized the arbitrator’s decision as biased.
This ruling addresses a single issue in a broader legal dispute between Cummings-Ramone and Leigh, who co-own RPI. The feud reflects ongoing tensions between the estates of the late bandmates and leaves several lawsuits still pending. Cummings-Ramone called the decision a victory for preserving the Ramones’ legacy, while Frey warned of further complications from the ruling.
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Tags: Band Dispute
Korean Company HYBE’s ADOR Label Files Lawsuit to Prevent K-Pop Group NewJeans from Terminating Exclusive Contract
December 5, 2024
K-Pop label ADOR, a HYBE subsidiary, has filed a lawsuit with the Seoul Central District Court to prevent girl group NewJeans from terminating their exclusive contract. The legal action, announced on December 3, follows NewJeans’ public declaration on November 28 of their intent to leave the label. Group member Hanni accused ADOR of failing to protect the members and cited psychological distress and a breach of trust.
ADOR maintains that the exclusive contract is legally binding and cannot be unilaterally terminated, emphasizing its commitment to continuing collaboration with NewJeans. The label also highlighted the importance of trust and long-term investment in K-Pop’s development. The dispute stems from tensions involving former ADOR CEO Min Hee-jin, who left the company amid allegations of misconduct.
The group has also alleged mistreatment by ADOR staff, deepening the conflict. ADOR expressed regret over the situation and reiterated its willingness to resolve the dispute through dialogue, but claimed efforts to communicate with the members have been unsuccessful. The very public legal dispute between the group and their label has sparked fear over NewJeans’s future in the music industry.
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Tags: Label Dispute, K-Pop
Fleetwood Mac Rumours Producer Settles Copyright Lawsuit Over Broadway Hit Stereophonic
December 4, 2024
Ken Caillat, producer of Fleetwood Mac’s Rumours, and playwright David Adjmi have reached a settlement over a lawsuit claiming Adjmi’s Tony-winning play Stereophonic was an “unauthorized adaptation” of Caillat’s 2012 memoir, Making Rumours. The play, about a fictional rock band recording an album in the 1970s, drew parallels to Fleetwood Mac’s infamous Rumours recording sessions. The settlement terms remain undisclosed, but both parties confirmed they are finalizing the agreement.
The lawsuit, filed in October, alleged substantial similarities between the memoir and the play, including shared story arcs and characters analogous to Fleetwood Mac members. Critics had previously noted the play’s striking resemblance to the band’s tumultuous history.
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Tags: Litigation, Copyright