Musi's Legal Battle with Apple: A Clash of Streaming Titans

In a high-stakes showdown, the free music streaming app Musi has taken on tech giant Apple, accusing the company of breach of contract and unfair dealing after its app was removed from the Apple App Store. The app, which has gained significant popularity among teenagers, operates on a unique model that has raised concerns within the music industry, leading to a legal battle that could have far-reaching implications.

Unlocking the Melody: Musi's Innovative Approach to Music Streaming

Musi's Unconventional Business Model

Musi, a Canada-based streaming service, has carved out a niche for itself by offering users access to audio from YouTube videos through its own interface. Unlike traditional music streaming platforms, Musi does not license music directly from rights holders, instead relying on the vast library of content available on YouTube. This approach has allowed the app to provide a free and uninterrupted listening experience, supported by a combination of ads and a one-time fee to remove them.

Rapid Growth and Widespread Adoption

Musi's unique offering has resonated with a significant user base, particularly among teenagers. According to data cited in a Wired report, the app has been downloaded over 66 million times since its launch a decade ago, with 8.5 million downloads in 2023 alone. The app's popularity is further highlighted by a Chicago high school where 80% of students reportedly use Musi to stream music.

Legality Concerns and Industry Backlash

Musi's business model has raised concerns within the music industry, with some questioning its legality. The global recording industry group IFPI reportedly filed a complaint with the App Store, and in 2023, the organization contacted Musi's lawyers regarding a feature called "secret sauce," which allegedly provided users with access to pre-release music. This feature was subsequently discontinued after the communications with IFPI.

The Investors' Dilemma

The app's legality has been a point of contention since its inception. During the initial investment phase, one of Musi's investors, fashion designer and entrepreneur Joe Mimran, backed out of the deal after conducting due diligence. Mimran cited concerns that as the company grew, it could face legal challenges from publishers for its past use of content.

Apple's Removal of the Musi App

The legal battle between Musi and Apple began when the tech giant removed the Musi app from its App Store on September 24, citing "intellectual property infringement." Musi claims that this decision was based on a five-word complaint from a complainant identified as "YouTube Legal," without any supporting evidence or documentation.

Musi's Legal Response

In response, Musi filed a lawsuit against Apple, accusing the company of breach of contract and breach of good faith and fair dealing. The streaming service is seeking a preliminary and permanent injunction to force Apple to restore the Musi app to its store, as well as damages for the losses incurred due to the removal.

Musi's Communication with YouTube

According to Musi's complaint, the company has been in communication with YouTube since 2015, addressing the platform's concerns about potential violations of its terms of service. Musi's lawyers have asserted that the app merely allows users to access YouTube's publicly available website through a functional interface and does not use YouTube's content in a commercial way or sell advertising on pages that primarily feature YouTube content.

Apple's Alleged Knowledge of YouTube's Lack of Response

Musi's complaint also alleges that Apple was aware of YouTube's lack of response to Musi's communications when it decided to remove the app from the App Store. The streaming service claims that YouTube failed to either respond to Musi or substantiate its accusations of intellectual property infringement.The legal battle between Musi and Apple is ongoing, with the case assigned to Judge Nathanael M. Cousins in the US District Court for the Northern District of California. The outcome of this clash could have significant implications for the music streaming industry, as it navigates the complex landscape of content ownership, licensing, and the evolving role of technology platforms in the distribution of music.