UMG sues Tunecore and Believe: $500M in ‘industrial scale infringement’

UMG sues Tunecore and Believe for what it says is “industrial-scale copyright infringement” worth at least $500 million in damages. Concord Music Group and ABKCO Music & Records are also plaintiffs

UMG sues Tunecore and Believe

Tunecore and Believes’ “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,” according to a UMG spokesperson.

“overrun with fraudulent artists and pirate record labels”

UMG’s lawsuit alleges that TuneCore and Believe illegally distributed songs under different artist names as well as remixed and sped-up versions.

Tracks from Kendrick Lamar, Ariana Grande, Justin Bieber and Lady Gaga were allegedly distributed by Believe under names like “Kendrik Laamar,” “Arriana Gramde,” “Jutin Bieber,” and “Llady Gaga.”

“Believe’s client list is overrun with fraudulent artists and pirate record labels who rely on Believe and its distribution network to seed infringing copies of popular sound recordings throughout the digital music ecosystem,” the suit alleges.

Believe “lacked the resources, creative talent and business acumen necessary to sign and develop top-level artists”

“From its inception, Believe recognized that it lacked the resources, creative talent and business acumen necessary to sign and develop top-level artists and create a catalog that could compete fairly with Plaintiffs,” continues the filing. “Believe therefore made the affirmative business decision to enter into distribution contracts with anyone willing to sign one of its basic form agreements.”

Why target TuneCore and Believe?

UMG may have targeted Tunecore and Believe over other potentially infringing distributors because of its outspoken opposition to a Universal backed shift to “value sharing artist-centric” streaming royalties. Believe called the plan an “unfair ‘reverse Robin Hood’ system that is centered around taking  compensation from rising artists to allocate it to top and established artists.”

“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,” said the UMG spokesperson. “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.”

Read the full court filing here.

Spotify questioned TuneCore’s infringement efforts

Spotify also found TuneCore’s efforts to curb infringement insufficient. The streamer awarded Preferred status to fourteen Artist Distributors meeting their “highest standards for quality metadata and anti-infringement measures.”

DistroKid, CD Baby and oneRPM made the list. TuneCore did not, though parent Believe was awarded the status as a Label Distributor.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.