Universal Music Group (UMG), ABKCO and Concord Music Group have filed a lawsuit against Believe and its distribution company TuneCore, accusing them of “massive ongoing infringements” of their sound recordings, including tracks by Justin Bieber, Ariana Grande, Rihanna, ABBA, Kendrick Lamar, Lady Gaga, DJ Snake, Aqua and more. The companies are seeking “at least $500,000,000” in damages.
In a complaint filed Monday evening (Nov. 4) in Manhattan federal court by Andrew Bart and Gianni Servodidio at Jenner & Block, UMG, ABKCO and Concord Music Group accuse Believe of being “overrun with fraudulent ‘artists’ and pirate record labels” and distributing copies of those fraudulent recordings to various streaming services and social media sites.
Lawyers for the plaintiffs claim that “Believe makes little effort to hide its illegal actions” and that the allegedly infringing recordings are “often minor variants on the names of… famous recording artists and titles of their most successful works.” The complaint says the alleged fraudsters attempt to avoid detection of the allegedly infringing recordings — some of which, they claim, are “sped up” or “remixed” versions of popular songs — by using misspellings of popular artist names, including “Kendrik Laamar,” “Arriana Gramde,” “Jutin Biber” and “Llady Gaga.”
“Believe is fully aware that its business model is fueled by rampant piracy” in “pursuit of rapid growth,” the lawsuit claims, adding that the company has “turned a blind eye” to the infringing content that makes its way to social media and streaming services through its platform.
Additionally, lawyers for UMG and the other plaintiffs say that “Believe has taken advantage of the content management claiming system” on YouTube “to divert” and “delay… payment of royalties” that belong to the record labels. It is “telling,” they add, that after YouTube resolves these conflicts regarding the rightful ownership of these sound recordings, “Believe continue[s] to distribute the exact same track to other digital music service providers and to seek royalties for use of that track from those providers.”
This is not the first time bad actors have been accused of using YouTube’s content management system to claim royalties that are not rightfully theirs. In 2022, two men in Phoenix, Arizona pled guilty to claiming $23 million worth of YouTube royalties from unknowing Latin musicians like Julio Iglesias, Anuel AA, and Daddy Yankee despite having no actual ties to those artists. To facilitate claiming those royalties, the two men, operating under the company name MediaMuv, used AdRev, a rights management firm owned by Downtown.
“Believe is a company built on industrial-scale copyright infringement,” said a spokesperson for UMG in a statement. “Their illegal practices are not limited to cheating artists on major labels but artists on independent labels as well — including artists on the independent labels within the trade bodies of which Believe is itself a member. It’s no wonder that Believe has been outspoken against the streaming reform principles for which so many major and independent labels have been advocating. Why? Because such reforms would undermine and expose their system of building scale and market presence by distributing music for which they have no rights and illegally collecting royalties to enrich themselves and their co-conspirators.”
The complaint specifically charges Believe with direct copyright infringement, contributory copyright infringement, vicarious copyright infringement, direct infringement of pre-1972 sound recordings, contributory infringement of pre-1972 sound recordings and vicarious infringement of pre-1972 sound recordings.
Representatives for Believe and TuneCore did not immediately respond to Billboard‘s requests for comment.
It’s been a busy year for TuneCore’s parent company Believe. On March 1, the French music giant, which was publicly traded on the Euronext Paris stock exchange, announced that its board of directors had approved the move to take it private and that there was an “interested party” looking to acquire it. First, however, the bidder was requesting due diligence information and financial data ahead of making a formal bid. Later that month, the name of the bidder was revealed when it was announced that Warner Music Group (WMG) had issued a formal notice to disclose its interest in acquiring Believe, which also owns publishing administrator Sentric as well as labels like Naïve, Nuclear Blast and Groove Attack.
In early April, however, WMG called off its plans to submit a formal offer. The label did not elaborate on its decision, stating only that it was made “after careful consideration.” On April 19, Believe’s board of directors announced it was supporting an offer to take the company private at 15 euros ($15.98) per share from a consortium of funds managed by TCV, EQT X and Believe chairman/CEO Denis Ladegaillerie. The board’s three independent members unanimously voted in favor of an opinion that the bid was in the interest of minority shareholders.
Fraud and copyright infringement have been hot-button issues in the music business as the industry becomes more and more democratized, offering anyone the opportunity to release music in hours — sometimes minutes — at the click of a button. In response, TuneCore, along with CD Baby, Distrokid and other competitors, set up “Music Fights Fraud,” a coalition designed to stop bad actors from hopping from service-to-service to release songs they don’t own the rights to. A number of initiatives, including Credits Due, have since launched to try to fix metadata problems in the music business that can leave artists susceptible to royalty stealing and fraud, particularly on sites like YouTube.
Still, despite these efforts, TuneCore and other DIY distributors have been accused of allowing bad actors to use their sites to upload infringing or fraudulent content. In August 2020, Round Hill Music’s publishing arm sued TuneCore for “willful and unauthorized use” of 219 of their sound recordings. And in 2022, Billboard reported that some music executives believe Create Music Group games the system on YouTube to claim royalties, with one label source claiming the company was doing so “egregiously.”
Just last month, TikTok also rang the alarm bell about fraudulent content when it backed out of licensing negotiations with Merlin, a coalition of indie labels and distributors, to allegedly curb users uploading works they don’t own the rights to on the platform. TikTok said it would instead pursue individual licensing deals with labels and distributors that it considered to be safe.
