Member Since: 4/28/2012
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TIDAL, Google, Microsoft face Class Action Litigation
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Breaking: Tidal, Microsoft, Google Play, Rhapsody, Slacker Now Facing Class Action Litigation
What started as a $150 million lawsuit between David Lowery and Spotify is now threatening to snowball into one of the largest legal fights the music industry has ever witnessed.
Spotify’s attorneys at Mayer Brown LLC are diligently fighting against a massive class action initiated by David Lowery, itself a growing animal with two separate legal teams now chasing infringement claims surpassing $200 million. But that’s just the beginning: now, a number of rival streaming music services are getting sucked into the maelstrom, with multiple class actions with potentially billions in royalty damages on the way, according to sources.
This is happening, and it’s happening fast. According to confidential information shared with Digital Music News over the weekend, legal paperwork may already be getting drafted against Tidal, Microsoft-owned Xbox Music and Groove Music, Google Play Music, Rhapsody, Slacker, and potentially other streaming music services, with similar, $150 million damage claims for each.
Backdated NOIs = Admission of Guilt
That has prompted quick ‘cover your ass’ style reactions from Rhapsody, Deezer, Microsoft, and Slacker, all of whom have issued backdated NOIs (Notices of Intent) which are the procedural first step for securing a proper mechanical license. The only problem is that these NOIs date back to 2005, according to paperwork shown to Digital Music News, which could demonstrate culpability in the new class action filings.
Apple Music, YouTube: In the Clear?
Apparently Apple Music will not be named in any of this litigation, thanks to proper issuance of NOIs. According to sources, Apple’s NOI paperwork has a few missing elements, but clearly shows procedural compliance and proper intent to license. Apple Music, which launched in July of 2015, would also face far smaller damages if a licensing problem arose, and could likely settle for a modest fee.
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