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What It Means If Drake Wins Lawsuit Against UMG

rmtsa by rmtsa
November 27, 2024
in Music
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What It Means If Drake Wins Lawsuit Against UMG
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In a shocking move, Drake’s company, Frozen Moments, LLC, has filed two pre-action petitions against his parent record company Universal Music Group and Spotify.

The first petition, filed in New York Supreme Court on Monday (Nov. 25), accuses the music conglomerate UMG of colluding with Spotify to artificially inflate Kendrick Lamar’s “Not Like Us” diss song to Drizzy’s detriment. The 17-page filing is filled with shocking allegations including claims that UMG violated the Racketeer Influenced and Corrupt Organizations (RICO) Act, the NY Deceptive Business Act and the NY False Advertising Act. A second legal action, filed in Texas on Monday, accuses UMG of defamation for releasing “Not Like Us,” which contained “falsely accusing [Drake] of being a sex offender,” and iHeartRadio of conspiring in a pay-to-play scheme.

Drake has yet to officially file a lawsuit, but the filing is a preemptive action in order to force UMG to turn over related documents. Drake taking on the music company in court and winning means the ramifications could be massive.

If the allegations in the court filing are true, music giant UMG conspired to engage in a campaign to “manipulate and saturate the streaming services and airwaves” with Kendrick’s “Not Like Us” using bots, pay-to-play agreements and other tactics in order for UMG executives to maximize profits. One accusation is especially damning. According to the filing, UMG charged Spotify a 30 percent lower licensing rate in exchange for Spotify recommending the song to users who are searching for unrelated content. Neither company reportedly disclosed this licensing agreement.

UMG, along with the other two record companies that make up the big three—Sony Music Entertainment and Warner Music Group—hold ownership stakes in Spotify. The big three companies also reportedly negotiated with Spotify on the value of a stream, which creates a conflict of interest unique to the music industry. It also means the companies have the ability to dictate an artist’s value. According to the filing, UMG did so with “Not Like Us.”

Drake has been signed under the UMG umbrella his entire career. He was initially inked through Young Money Records and Republic Records. In 2022, the signed a new deal directly with UMG subsidiary Republic for a reported $400 million. However, his relationship with UMG CEO Lucian Grainge may have soured. Drake claims the music giant used illegal means to prioritize Kendrick, who is also in bed with UMG through his pgLang label’s deal with Interscope.

With something as big as RICO allegations being levied against UMG, a win for Drizzy in court could start a wave of change in the music industry. An industry that has been under scrutiny as the ambiguity of streaming and album sales continues to be a mystery.

A case this big could cause the state and government to step in, akin to New York State Attorney General Eliot Spitzer’s probe into payola in 2004, which resulted in all three big record companies agreeing to pay settlements.

A win for Drake may also be a huge leap forward in protecting artists in the music industry and outing labels for unscrupulous practices. That is if Drake has a case.

Universal Music Group is denying Drake’s accusations. A spokesperson for the company has released the following statement to XXL in response to Drake’s claims: “The suggestion that UMG would do anything to undermine any of its artists is offensive and untrue,” the statement reads. “We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear.”

Drake going head-to-head with UMG and Spotify in court would be an unprecedented moment. A moment that could disrupt the system and cause major change in the music industry.

WATCH THE XXL CYPHER FEATURING AB-SOUL, FERG AND SAUCE WALKA

Read More: Who Is Lucian Grainge, and How Powerful Is He? Very

See Rappers Who Beat Major Legal Cases and Walked Away With a Victory

Hip-hop came out with a win in some way in these cases.



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