In a groundbreaking legal battle, Universal Music Group (UMG), ABKCO Music & Records, and Concord Music Group have filed a colossal copyright infringement lawsuit against Believe and its subsidiary TuneCore. The complaint, filed in the US District Court for the Southern District of New York, alleges that Believe has built its business through "industrial-scale copyright infringement" of "the world's most popular copyrighted recordings." The plaintiffs are seeking damages of at least $500 million, setting the stage for a high-stakes showdown that could have far-reaching implications for the music industry.

Exposing the Alleged Piracy Practices of Believe

Unauthorized Dissemination of Copyrighted Recordings

The lawsuit claims that Believe has achieved significant growth by acting as a hub for distributing unauthorized copies of copyrighted recordings to major platforms such as TikTok, YouTube, Spotify, Apple Music, and Instagram. The complaint alleges that Believe often distributes "overtly infringing versions of original tracks by famous artists with notations that they are 'sped up' or 'remixed'." This practice, according to the plaintiffs, is a blatant violation of copyright laws and has deprived the rightful owners of these recordings of the royalties they are owed.

Manipulating Content ID Systems

The lawsuit also focuses on Believe's alleged manipulation of YouTube's Content ID system. The plaintiffs accuse Believe of claiming ownership of the copyrights in the recordings it distributes and using these systems to monetize the use of those recordings, even after losing disputes on YouTube. This practice, according to the complaint, has allowed Believe to continue distributing the same infringing tracks on other platforms like Spotify and Apple Music, further compounding the alleged copyright infringement.

Disregard for Streaming Reform Principles

The lawsuit suggests that Believe's opposition to the streaming reform principles advocated by many major and independent labels is not surprising. The plaintiffs argue that 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 coconspirators."

Unauthorized Versions of Popular Hits

The complaint cites numerous examples of unauthorized versions of hit songs, including Aqua's "Barbie Girl," Taki Taki by DJ Snake ft. Selena Gomez, Ozuna and Cardi B, ABBA's "Lay All Your Love On Me," and Billie Eilish's "bad guy." According to the plaintiffs, these tracks remained available on other platforms even after Believe acknowledged it had no rights to the content on YouTube.

Distributor Liability and Indemnification Clauses

The lawsuit highlights the potential implications for distributors like Believe and TuneCore, who may be held liable for the copyright infringement of the artists they represent. The complaint points to the indemnification clauses in the distribution agreements of both Believe and TuneCore, which require artists to take responsibility for any copyright violations. This raises questions about the extent to which distributors can be held accountable for the actions of the artists they work with.

A Precedent-Setting Case

The lawsuit against Believe and TuneCore comes on the heels of a similar case involving Sony Music Entertainment and an artist called Trefuego, which raised fundamental questions about distributor liability in the digital streaming age. The outcome of this latest lawsuit could set a precedent that could have far-reaching implications for the music industry, particularly as it grapples with the growing issue of unauthorized "modified" tracks on platforms like TikTok.