Tune lyrics firm LyricFind alleges {that a} main investor in its major rival, Musixmatch, tried to “purchase or bury” the corporate in an effort to stave off competitors, in paperwork associated to LyricFind’s antitrust lawsuit in opposition to Musixmatch.
The allegation was made in LyricFind’s authorized grievance in opposition to Musixmatch filed in March of this 12 months, however was redacted from publicly out there variations of the doc. LyricFind has now launched the unredacted model.
Due to a “aggressive menace” from LyricFind, Musixmatch and its investor TPG “launched into a multi-faceted ‘purchase or bury’ scheme to exclude LyricFind and different suppliers from the market so it may proceed charging unlawfully inflated costs with out the danger of dropping enterprise.” LyricFind mentioned within the grievance.
The grievance alleges that, in 2023, TPG tried to amass LyricFind “in order that Musixmatch would now not should compete with it.” Throughout that course of, TPG and Musixmatch gained entry to confidential LyricFind data, which was coated by a non-disclosure settlement. LyricFind alleges that TPG and Musixmatch violated that NDA by leaking data to Spotify “within the hopes that doing so would assist them keep away from competing on value or high quality.”
When discussions between LyricFind and Spotify continued regardless of the leak, LyricFind alleges, Musixmatch switched techniques and signed an settlement with writer Warner Chappell Music (WCM) that made Musixmatch the unique supplier of lyrics rights licensing and lyric knowledge companies for songs revealed by WCM.
That settlement is on the core of the antitrust lawsuit that LyricFind filed in opposition to Musixmatch and TPG in a US District Court docket in San Francisco in March.
LyricFind argued that the settlement was meant to push it out of the lyrics market by eradicating its capability to offer a complete catalog of lyrics, and that it additionally ties the palms of music streaming companies like Spotify, as they now should license WCM lyrics by way of Musixmatch “at monopolistic costs.”
Notably, LyricFind has minimize at the very least one unique licensing deal of its personal, with Common Music Publishing Group in 2014, which gave LyricFind unique rights to sublicense UMPG lyrics, although UMPG retains the suitable to license its lyrics instantly.
“LyricFind filed a nuisance lawsuit in opposition to Musixmatch, complaining about the identical kind of licensing practices that it has used within the current previous,” a Musixmatch spokesperson informed MBW.
“LyricFind is now accusing Musixmatch of foul play and hiding behind the copyright legal guidelines, when in actuality it’s exactly these legal guidelines that guarantee rights house owners have a selection about who they do enterprise with and that songwriters are compensated for his or her artistic works. LyricFind’s misguided try to get well in courtroom what it couldn’t win out there place would infringe upon and restrict the alternatives that music rights holders make.”
LyricFind has argued it’s preventing on behalf music streaming platforms. In an open letter earlier this 12 months, Founder and CEO Darryl Ballantyne mentioned Spotify had “accomplished onboarding with LyricFind however have been robbed [of[ the opportunity to select the lyric provider of its choice” as a result of the Musixmatch-WCM deal.
Musixmatch has called the lawsuit “meritless,” and both it and TPG filed motions to dismiss the case. In its motion, filed in June, Musixmatch said Warner Chappell, because the proprietor of publishing copyrights, has the suitable to signal exclusivity agreements.
“LyricFind has not sued WCM or challenged the lawfulness of WCM’s choice to finish their relationship, and for good motive: underneath the U.S. Copyright Act, WCM indisputably has the suitable to completely license and distribute its mental property because it sees match, and has exercised that proper by contracting with Musixmatch,” acknowledged the movement, which may be learn in full right here.
“LyricFind’s misguided try to get well in courtroom what it couldn’t win out there place would infringe upon and restrict the alternatives that music rights holders make.”
Musixmatch
Musixmatch additionally argued that the California courtroom doesn’t have jurisdiction within the matter, as LyricFind is a Canadian firm, Musixmatch is Italian, and the settlement between WCM and Musixmatch is ruled by the legal guidelines of the UK.
“LyricFind’s claims are a textbook instance of a upset competitor in search of to make use of the courts to realize what it couldn’t within the market. However LyricFind, a international plaintiff, has neither the suitable to hale Musixmatch, a international defendant, earlier than California courts, nor has it pled any believable claims that will entitle it to any aid,” Musixmatch acknowledged in its movement to dismiss.
In a response to that movement, filed with the courtroom on Thursday (July 10), LyricFind argued that the federal courtroom in California has jurisdiction as a result of Musixmatch “purposefully directed its anti-competitive conduct at the US and California. The USA is the epicenter of the lyric-services business, dwelling to WCM’s licensing enterprise, a lot of Musixmatch’s management, and practically all main DSPs impacted” by the Musixmatch-WCM settlement.
“[Musixmatch] are greedy at straws to maintain this case from going to trial.”
Darryl Ballantyne, LyricFind
It additionally rejected Musixmatch’s argument that WCM had a proper to enter into the contract.
“Courts have lengthy condemned exclusivity schemes just like the [Musixmatch-WCM deal], the place a vendor or distributor forecloses its rivals’ entry to key inputs, thereby driving them from the market, so it could possibly elevate costs….
“Copyright legislation doesn’t protect Musixmatch from antitrust legal responsibility. Courts have persistently rejected the notion that exclusivity preparations involving mental property are past the attain of the Sherman Act,” LyricFind added, referring to the US’s principal antitrust legislation.
In an announcement to media, LyricFind’s Ballantyne mentioned the Musixmatch and TPG dismissal motions “misrepresent the truth of lyric licensing, and people within the music business will see by way of their arguments. They’re greedy at straws to maintain this case from going to trial, and we sit up for beginning discovery to see the complete depth of their alleged anticompetitive scheme.”Music Enterprise Worldwide
