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It’s time for a July 4th weekend edition of the Executive Turntable, Billboard’s comprehensive(ish) compendium of promotions, hirings, exits and firings — and all things in between — across music. Check out this year’s Pride List of top LGBTQ+ executives in the industry. We also have a weekly interview series spotlighting a single executive and a regularly updated gallery honoring many of the industry figures we’ve lost throughout the year.
Thomas Coesfeld celebrated his one-year anniversary as CEO of BMG by joining the executive board of Bertelsmann, parent company of the Berlin-based music giant. The 34-year-old executive is point-person for Bertelsmann’s music business as a member of the board, which also includes chief executive Thomas Rabe and Thomas’ big brother Carsten Coesfeld, CEO of its venture capital arm, as well as company CFO Rolf Hellermann and chief human resources officer Immanuel Hermreck. Coesfeld took the reigns of BMG from longtime CEO Hartwig Masuch on July 1 of last year, and in short order instituted a new organizational structure by globalizing its catalog, sales and marketing teams and a “recalibration” of its presence in continental Europe, among other changes. Prior to rising to CEO, Coesfeld had been named deputy CFO at BMG in October 2021 before taking over as full-on CFO the following spring. During that time he oversaw BMG’s balance sheet and helped the company land 70 deals, including acquiring the catalogs of Mötley Crüe and Tina Turner, as well as those of Paul Simon, The Pointer Sisters, Peter Frampton and others.
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He previously served as chief strategy officer on the executive committee of the Bertelsmann Printing Group, but began his career in 2014 as a consultant at McKinsey. Coesfeld is also a member of Bertelsmann’s Group Management Committee (GMC), which advises the executive board.
“[Coesfeld] knows Bertelsmann well from various positions,” Rabe raved in the announcement. “As CEO of BMG, he has made important decisions for the future of the business, for example by bringing digital distribution in-house and using artificial intelligence in various areas of the music business. Thomas will enrich the work of the Management Board as well. I look forward to working even more closely with him.”
Meanwhile…
Hannah Neaves
Laura Lewis
Universal Music UK promoted Hannah Neaves to sole president of its catalog division, Universal Music Recordings. Her co-president over the last two years, Azi Eftekhari, has left the company, Billboard can confirm. Neaves and Eftekhari joined UMR in early 2022, roughly a year after the pair launched a London-based creative agency called Remedy Inc. Prior to joining forces, Neaves was creative director at TaP Music and Eftekhari had been head of label relations (EMEA) at YouTube. In the last two years, UMR’s wins include “Now and Then” — the “last Beatles song” — and other releases featuring Bob Marley, Amy Winehouse, the Spice Girls and more. “Hannah is, first and foremost, an artist person with an innate understanding of where creativity and discovery meet, something she has brought in abundance since re-joining our team,” said Universal Music UK chief David Joseph, referencing Neaves’ tenure at UMG’s Polydor earlier in her career. “A truly exceptional and inspiring executive, Hannah has already had huge success, most recently creatively leading the global and record-breaking Now And Then campaign for The Beatles, and there’s so much more to come.”
Former BMI executive Jody Williams was elected to a one-year term as the new chair of the Country Music Hall of Fame and Museum‘s board of officers and trustees. The publishing veteran, who founded Jody Williams Songs in 2020 following a 14-year run at BMI, has served on the museum’s board for 17 years. He replaces outgoing chair Mary Ann McCready, who remains as a trustee. CMHFM CEO Kyle Young remarked that Williams is “woven into the fabric of country music’s creative community in a true and meaningful way” and “resolute in furthering country music’s vitality as a cultural artform.” The Nashville institution also elected several new members to the board, including artist manager Clint Higham and WME agent Becky Gardenhire.
Merlin, the digital licensing partner for the independent music sector, welcomed Neil Miller as its new general counsel. Miller arrives from Greenberg Traurig, where he served as partner of the global law firm for three years. Prior to that, Miller was an associate general counsel at Facebook and earlier in his career spent six years as GC at SoundCloud. He is based in the UK. “Merlin is a dynamic organisation operating in a complex and ever changing legal and commercial environment,” said Charlie Sexton, Merlin COO. “Neil’s wealth of experience across music and digital entertainment is exactly what we need to meet these challenges. He is highly respected across the industry and brings a valuable blend of long-term thinking, technical skills, and impressive leadership.”
Believe has new leadership in place for its efforts throughout China, naming Charles Liu as general manager and Rebecca Dong as managing director for the growth-ready region. Based in Beijing and reporting to Sylvain Delange, Believe’s president of Asia-Pacific, Liu will focus on building partnerships and growing Believe’s roster of labels and artists. Dong rolls up to Liu and will manage all operations, along with legal, finance and HR matters. Believe has operated in China since 2016 and has grown to 80-plus “digital and music experts” across offices in five cities, the company said. “Greater China is both an exciting and challenging market where Believe’s unique approach can significantly contribute to accelerate the rise of a strong, diverse and thriving local music ecosystem as we’ve done is so many other markets in Asia Pacific,” said Delange.
NASHVILLE NOTES: Universal Music Group Nashville hired Houston Gaither as director of radio marketing. She was previously Sony Music Nashville’s manager of content, promotion and artist development … Former PLA Media director of publicity and branding Becky Parsons formed Found Sound Media, a PR and management firm focused on developing LGBTQ+ and female artists … Kylie Taylor joined Black River Entertainment as a graphic designer. Reach her at ktaylor@blackriverent.com.
OTM Music, a boutique publishing company with footholds in London, New York and Los Angeles, welcomed Kristin Genovese as the firm’s new U.S. head of sync and Kate Sweetsur as the new head of A&R. The company, which provides creative services for its roster of songwriters and brands, also noted the recent additions of Chi Chi Nwakodo as senior creative and Ethan Mizen as A&R manager.
ICYMI:
Britney Davis
Hipgnosis Song Management founder Merck Mercuriadis will step down as chairman of the investment manager, months after vacating the CEO role … Stephanie Rosa is managing director of Tixr‘s new London office … Former Capitol Music Group executive Britney Davis was named general manager at Quality Control … Warner Records promoted Robert Santini to senior vp of brand partnerships and ad sync … and Mano Sundaresan is the new head of editorial content for Pitchfork.
Last Week’s Turntable: Audacy OG Elevated
After 14 years, a new political dawn in the United Kingdom as Keir Starmer’s Labour Party storms to victory in the general election. And the end of the Tories’ long reign.
Labour won in a predictable landslide, paving the way for Starmer to become the next prime minister.
The U.K. music industry, through its various support networks and lobby bodies, has welcomed the incoming, center-left government, with a resounding message: let’s get to work.
“Our industry faces serious challenges and needs urgent attention to recover from years of neglect through the cost of living crisis and the pandemic,” comments Michael Kill, CEO of the Night Time Industries Association (NTIA).
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Michael Kill, CEO of NTIA, Welcomes Labour Government: The Real Work Starts Today! “As CEO of the Night Time Industries Association (NTIA), I warmly welcome the new Labour Government. Your commitment to our sector, vital to the UK’s economy and culture, is appreciated.… pic.twitter.com/HXWFQJvWlY— Night Time Industries Association (@wearethentia) July 5, 2024
The sector must now “rebuild trust with the new government, after years of feeling misunderstood and undervalued, we must work towards changing the narrative around the value of the night time economy, secure stronger representation at all levels, and create a more integrated regulatory system.”
Kill continues, “We must also address tax disparity, reform business rates, protect independent operators, and align VAT with European standards.”
UK Music CEO Tom Kiehl calls on the new leader to use his “resounding mandate for change” to boost jobs, growth and opportunity in the sector.
The nation’s music industry contributes almost £7 billion ($9 billion) annually to the U.K. economy and supports 210,000 jobs, according to the London-based umbrella organization, which represents all sectors of the U.K.’s music industry.
Right now, explains Kiehl, the music business faces “a number of challenges, but also opportunities. A strong relationship between UK Music and the new government will be essential to navigating what the rest of this decade brings.”
UK Music sends its congratulations to Sir Keir Starmer and his team on their election victory, which gives his new Government a resounding mandate for change. My reaction to the outcome of the 2024 General Election https://t.co/u5OEtHDxnI— Tom Kiehl (@Tomkiehl) July 5, 2024
UK Music developed and published a 10-prong pre-election “manifesto” for the next government, which includes objectives to boost music exports, protect music spaces, improve music education and encourage responsible AI use.
“As the collective voice of the music industry, UK Music already has strong links with Sir Keir’s top team,” Kiehl adds. “Our plan is to continue to build on those relationships and work across the political spectrum, including the many newly elected MPs, to deliver real change and further growth for our world-leading sector.”
According to an BBC forecast published Friday morning (July 5), Labour is set to take 410 seats (out of 650) with an expected majority of 170. For the Conservatives, the result could be their worst in history, with the party predicted to win as few as 129 seats.
Sean “Diddy” Combs has been hit with a new lawsuit by exotic dancer Adria English, who claims she was a victim of sex trafficking orchestrated in the 2000s by the Bad Boy mogul and others she named in a sprawling complaint filed Wednesday (July 3) in New York federal court.
According to the lawsuit, filed by attorneys Ariel Mitchell-Kidd and Steven Metcalf, English was a victim of sex trafficking at the hands of Combs along with his fellow defendants Tamiko Thomas, who was allegedly an employee of Bad Boy Entertainment at the time, and a man named Jacob Arabov (a.k.a. Jacob The Jeweler). She alleges that the trio was “aided and abetted” by several companies also named as defendants in the complaint, including Bad Boy Entertainment, Combs Global Enterprises, Sean John Holdings, VIBE magazine and its current parent company, Penske Media Corporation (PMC). (PMC did not own VIBE when the alleged events occurred.)
Notably, the complaint alleges that the actions of all defendants amounted to a violation of federal RICO (Racketeer Influenced and Corrupt Organizations) laws, which have historically been used to target the mafia, drug cartels and other organized crime rings (a similar state-level law in Georgia has formed the basis of prosecutors’ case against rapper Young Thug, whom they allege leads a violent Atlanta street gang known as Young Slime Life). These types of racketeering laws make it easier for prosecutors to sweep up members of alleged criminal enterprises based on many individual actions.
English claims she first came into contact with Combs in 2004 — when she says she was working as a dancer at Larry Flynt’s Hustler Club in Manhattan — after accompanying her then-boyfriend, model Anthony Gallo, to an audition for a Sean John modeling campaign. While at the audition, she says Gallo and another model were asked to perform fellatio on Combs as a condition of booking the job. After Gallo refused, she claims he was later told he could book the campaign if he commanded English to work as a go-go dancer at Combs’ Labor Day White Party in the Hamptons, N.Y. “In an effort to assist Mr. Gallo’s desire to become a model, Plaintiff agreed to what she believed to be legitimate employment,” the complaint reads.
While working the event, English says she was instructed to give lap dances and be “sexually flirtatious” with guests and “forced to consume liquor and illicit narcotics,” including bottles she claims were laced with ecstasy. She alleges she was subsequently invited to perform at additional White Parties, where Combs and Thomas — whom she compares to Ghislaine Maxwell, the former associate of late sexual predator Jeffrey Epstein — eventually “groomed” her into sex trafficking.
By her third White Party, English claims that Combs and Thomas demanded she partake in sexual intercourse with guests, using knowledge of her past work in adult films “to coerce” her into doing so. This activity, she claims, continued through 2009 at White Parties thrown at Combs’ Hampton and Miami residences.
One of the men English says she was forced to have sexual intercourse with during this period was Jacob Arabov (Jacob The Jeweler) at the behest of Combs, as she feared she could lose her job along with her boyfriend’s future modeling opportunities. “Plaintiff, fearing not only her safety, but her and her then-boyfriend’s job security, did as instruct and went with Defendant Jacob where she engaged in forced sexual intercourse with Defendant Jacob at the demand and behest of Defendant Combs,” the complaint reads.
English further alleges that Combs kept hidden cameras in every room of his Hamptons and Miami homes and believes her sexual assaults were caught on tape, including when she was “unconscious.”
During this period, English also alleges that VIBE magazine published an image of her in a November 2006 story about Combs’ White Parties without her consent, claiming its use violates her “rights to privacy via misappropriation.” She claims she “did not discover the infringing use” until April 2024. She further accuses VIBE and parent company PMC of “intentionally and falsely marketing and promoting” Combs’ White Parties “as a high-profile networking and social event in an effort to disguise and deceive the real intent of the event…and to further the goals of the Defendants illegal and criminal Enterprise.”
English says she continued putting up with Combs’ demands in part due to promises that he would help her break into the music business by putting her in an all-female music group. She says she finally detached herself from Combs when she returned to California in 2009, at which point she claims she suffered from deep depression and anxiety in response to the past trauma of being assaulted and trafficked, along with her unraveling career.
According to the lawsuit, English’s victimization at the hands of Combs and his alleged co-conspirators has led her to suffer continued “extreme emotional distress” that has impacted every aspect of her personal life.
In a statement sent to Billboard, Combs’ attorney Jonathan Davis said, “No matter how many lawsuits are filed it won’t change the fact that Mr. Combs has never sexually assaulted or sex trafficked anyone. We live in a world where anyone can file a lawsuit for any reason and without any proof. Fortunately, a fair and impartial judicial process exists to find the truth and Mr. Combs is confident he will prevail against these and other baseless claims in court.”
Billboard reached out to Thomas and Arabov for comment but had not heard back by press time. PMC declined to comment.
This is the 10th sexual misconduct lawsuit to be filed against Combs since his ex-girlfriend, pop star Cassie, made waves with her sexual abuse suit against the mogul in November, which was settled less than 24 hours later. He has vehemently denied all cases against him. Combs’ Miami and Los Angeles homes were raided by federal agents in March, though no arrests were made.
In May, disturbing footage obtained by CNN showed Combs abusing Cassie in an elevator bank at a Los Angeles hotel in March 2016. Soon after the footage came out, Combs apologized for his actions, which he says he was “disgusted” by.
“I was f—ed up. I mean, I hit rock bottom. But I make no excuses,” he said in the since-deleted Instagram clip. “My behavior on that video is inexcusable. I take full responsibility for my actions in that video. I’m disgusted. I was disgusted then when I did it, I’m disgusted now.”
In the wake of the allegations, the fallout for Combs has continued to reverberate. Last month, his media company Revolt announced employees would become the company’s largest shareholders after Combs reportedly sold his stake to an anonymous buyer. Also in June, Combs’ Miami Day honor was revoked and Howard University withdrew an honorary degree it bestowed upon him.
Editor’s Note: PMC is the parent company of Billboard.
Vinyl Group CEO Josh Simons, Billboard senior editor Lyndsey Havens and VibeLab co-founder Lutz Leichsenring join the second wave of speakers locked-in for Bigsound 2024, Australia’s annual conference and showcase extravaganza.
Also confirmed to this year’s lineup is Music Venue Trust CEO Mark Davyd and Live Nation’s Kamran Haq, senior national promoter at the concerts giant and senior booker for Europe’s Download Festival.
Simons, the leader of Vinyl Group, Australia’s only ASX-listed music business, will speak at Bigsound just six months after the company completed the acquisition of The Brag Media, which is now housed alongside Jaxsta, Vampr and Vinyl.com. A former artist with indie band Buchanan, Simons has, over time, successfully raised A$20 million for his tech startups.
Havens, say organisers QMusic, will share her thoughts on leadership and authenticity in the current landscape, while Leichsenring will offer perspectives on creating sustainable music ecosystems.
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The daytime industry sessions will include a timely panel discussion, “Who Gives a F*ck About Australian Music?,” which will explore the global perception of Australian music and engagement from local music fans.
Meanwhile, a slew of 50-plus buzz acts are added to the nighttime program, including Miiesha, Bean Magazine, tiffi, Stella Bridie, Neptune, Same Blood, TOWNS and Alayna.
Set for Sept. 3 – 6 in Brisbane, the 2032 Olympic city, Bigsound’s conference and showcase extravaganza will once again make a splash in the vibrant Fortitude Valley.
As previously reported, “Milkshake” star Kelis and Amy Taylor, singer with ARIA Award-winning punk rock act Amyl And The Sniffers, are keynote speakers, while a lineup of international speakers has been confirmed, including Korda Marshall (Mushroom Group), Bradly Palmer (Concord Music Publishing), Elliott Lefko (AEG / Goldenvoice).
The event is supported by the Queensland government through Tourism and Events Queensland, and is presented by Oztix and Brick Lane.
Visit Bigsound.org.au for more.
Warner Music Group (WMG) sent letters to tech companies this week instructing them not to use the label’s music to train artificial intelligence technology without permission. Sony Music sent out similar letters to over 700 companies in May.
“It is imperative that all uses and implementations of machine learning and AI technologies respect the rights of all those involved in the creation, marketing, promotion, and distribution of music,” Warner’s notice reads.
It continues, “all parties must obtain an express license from WMG to use… any creative works owned or controlled by WMG or to link to or ingest such creative works in connection with the creation of datasets, as inputs for any machine learning or AI technologies, or to train or develop any machine learning or AI technologies.”
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The notices from Sony and Warner come in the wake of the AI Act, legislation that was passed in the European Union in May. “Any use of copyright protected content requires the authorization of the rightsholder concerned unless relevant copyright exceptions and limitations apply,” the act notes. “Rightsholders may choose to reserve their rights over their works or other subject matter to prevent text and data mining, unless this is done for the purposes of scientific research.”
If companies take this action, then “providers of general-purpose AI models need to obtain an authorization from rightsholders if they want to carry out text and data mining over such works.”
The Cold War between the music industry and much of the AI world has been heating up in recent months. Labels are adamant that AI companies should license their music if they want to use those massive catalogs of recordings to develop song generation technology.
Most AI companies, however, aren’t interested in paying. They often argue that their activities fall under “fair use” — the U.S. legal doctrine that allows for the unlicensed use of copyrighted works in certain situations.
In June, the three major labels sued two AI music companies, Suno and Udio, accusing them both of “willful copyright infringement on an almost unimaginable scale.” “These lawsuits are necessary to reinforce the most basic rules of the road for the responsible, ethical, and lawful development of generative AI systems and to bring Suno’s and Udio’s blatant infringement to an end,” RIAA Chief Legal Officer Ken Doroshow said in a statement.
In a response to the suits, Suno CEO Mikey Shulman said his company’s tech is “designed to generate completely new outputs, not to memorize and regurgitate pre-existing content.” Udio said it “stand[s] behind our technology.”
Anthem Entertainment has launched a new joint venture with Jared Gutstadt, the founder/CEO of Audio Up. The JV’s first two signees include Randy Savvy of Compton Cowoys and alt/pop/folk singer Kayslee Don Collins. The new deal puts Gutstadt and Anthem back in business together for the first time since 2019, when Gutstadt left his post as CEO of Jingle Punks, an Anthem subsidiary which he also founded. Audio Up will now have the ability to develop some of the former publishing and intellectual property assets that Gutstadt created when he was with Jingle Punks, including the Bear and a Banjo scripted podcast series. Audio Up can also work with new and existing Anthem music catalogs which the goal of creating new IP lanes for Anthem’s frontline signees. Anthem and Audio Up will also now have access to each other’s premiere studio spaces in Toronto, Nashville and Los Angeles.
Heavy Duty Music has announced new publishing deals with acclaimed indie singer/songwriter Jessica Pratt, avant-pop talent Cecile Believe (SOPHIE, Caroline Polachek) and both a publishing and label deal with Berlin-born artist/producer RIP Swirl. Swirl also acts as Heavy Duty’s first signing through its new joint venture with Imran Ahmed‘s In Real Life, which is already home to talents like Erika de Casier and Peggy Gou.
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Position Music has signed a worldwide publishing deal with Maya Kurchner in collaboration with Chosen People. Kurchner signed with Chosen People back in 2020 and has since worked with acts like Chappell Roan, Bebe Rexha,Tiësto, Alesso, Bazzi, Tinashe and more.
Third Side Music has announced an exclusive creative publishing deal to administer the works of composer Galt MacDermot in the United States. This includes his Tony-winning compositions for Hair: The American Tribal Love-Rock Musical (HAIR), Two Gentlemen of Verona, the film Rhinoceros and more.
Liz Rose Music has announced the signing of Jenna Johnson to an exclusive publishing deal. A multi-faceted talent, Johnson is best known for working alongside artists of all genres, from Nate Smith, BigXThaPlug, David Guetta, Bebe Rexha, Ty Dolla $ign, A Boogie Wit Da Hoodie, The Band Camino to Jared Benjamin and more.
Reservoir has signed songwriter-producer Lewis Thompson to a worldwide publishing deal for all future works. As a songwriter, Thompson has tracks like “Bed” by Joel Corry, RAYE, and David Guetta, “Head & Heart” by Joel Corry feat. MNEK and “I Wrote A Song” by Mae Muller in his repertoire. He’s also an artist in his own right, releasing tracks with David Guetta, Becky Hill and Alle Farben, dating back to 2022.
Position Music has signed Khalid “Khal” Yassein to a global publishing deal. Yassein is best known as the lead singer of indie folk outfit Wild Rivers, but he has also collaborated with a slew of other artists to date, including Sasha Sloan, venbee, Oh Wonder, Morgan Evans, The Fray, Matt Hansen, Maddie Zahm.
Rafter 3 Music and Warner Chappell Music have signed a global publishing deal with singer-songwriter Austin Michael. Hailing from Van Alstyne, Texas, Michael got his first intro to the music business through season 17 of American Idol, back when he was just 15. Since then, he moved to Austin and dedicated himself full-time to his artistry. This is his first publishing deal.
Wise Music Group has signed Sofi Paez to an exclusive publishing agreement with Berlin-based Bosworth Music GmbH. A pianist and composer born in San José, Costa Rica, Paez is now based in Berlin and experiments with piano, voice and electronic elements. Since 2023, her EP Circles gained the critical acclaim of her peers, and it led to her being handpicked to perform at Olafur Arnald’s OPIA launch event.
Edition Wilhelm Hansen, part of Wise Music Group, has signed Teitur “Teitur” Lassen to a publishing deal. The agreement is a co-publishing deal, partnered with Arlo & Betty Music, a company operated by Lassen’s longtime manager Christian Ulf-Hansen. Since getting his start nearly two decades ago, Lassen has released a slew of records, spanning from Stay Under the Stars (2006) to Songs from a Social Distance (2023) with Aarhus Jazz Orchestra.
When New Orleans rapper B.G. came home in September after serving an 11-year sentence following his guilty plea on two counts of possession of a firearm and one count of conspiracy to obstruct justice, the rap community rejoiced. He’s the man responsible for entering the phrase “bling-bling” into the pop culture lexicon, after all.
But nearly a year later, the founding member of ’90s rap group Hot Boys is facing an unusual legal challenge: On Friday (June 28), a U.S. District Court judge in Louisiana ruled that the New Orleans rapper must provide the U.S. Probation Office with a copy of the lyrics to his upcoming songs for approval before producing or promoting them.
The decision, handed down by U.S. district court judge Susie Morgan, came several months after B.G. (real name Christopher Dorsey) was arrested in March for performing at a Las Vegas concert alongside rapper Lil Boosie; apparently, B.G. needed prior permission from the court to associate with acts that also have felony convictions on their record, as Lil Boosie does. The probation officer in the case also cited B.G.’s work with Gucci Mane, another rapper/convicted felon with whom B.G. released a collaborative mixtape, Choppers & Bricks, in December.
B.G. was subsequently released on his own recognizance pending the judge’s decision. Shortly after, the rapper expressed his frustration in an Instagram post, saying in part, “It’s crazy how after paying my debt to society with 12 and a half years of my life I come home and still ain’t free…I been doing everything the right way and it seems like that ain’t enough.”
At a court hearing on June 18, B.G. and prosecutors confirmed they had reached a deal to modify the conditions of the rapper’s supervised release following his March arrest but “disagreed” over the prosecutors’ request to prohibit the rapper “from promoting and glorifying future gun violence/murder” in his music and at his concerts, according to the June 28 ruling.
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“The Defendant argues that the additional condition proposed by the Government is an unconstitutional prior restraint of speech that is an overly broad condition of supervised release,” the ruling reads.
The judge ultimately found that the prosecutors’ request was “not sufficiently clear and specific to serve as a guide for the Defendant’s conduct and for those entrusted with his supervision,” instead imposing a special condition that B.G. provide the probation office “with a copy of the lyrics of any song he writes,” according to the ruling. All lyrics B.G. shares with the probation office will be passed to the U.S. government, which can then decide if his “conduct is inconsistent with the goals of rehabilitation,” the ruling continues.
A representative for B.G. did not immediately respond to Billboard‘s request for comment.
The ruling is certain to cause controversy at a time when the practice of lyrics being used against rappers in criminal court has become a hot-button issue. In November, a judge ruled that Young Thug‘s lyrics can be used during his YSL RICO case, saying that “the First Amendment is not on trial.” Bobby Shmurda and the late Drakeo the Ruler have also had their lyrics used against them in criminal cases. There have since have been laws passed and proposed on both the state and federal levels to stop the criminalization of rap lyrics; in September, California Gov. Gavin Newsom signed into law a statute restricting the practice, while similar laws have been proposed in New York and the U.S. House of Representatives.
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: Pharrell Williams and Louis Vuitton face a trademark lawsuit over “Pocket Socks”; Diplo is hit with a lawsuit claiming he distributed “revenge porn”; the Village People move forward with a lawsuit against Disney; a longtime attorney repping Britney Spears moves on; and much more.
Top stories this week…
SOCKED WITH A LAWSUIT – Pharrell Williams and Louis Vuitton were hit with a trademark lawsuit over their launch of a high-end line of “Pocket Socks” a literal sock-with-a-pocket that launched at Paris Fashion Week last year and sells for the whopping price of $530. The case was filed by a California company called Pocket Socks Inc. that says it’s been using that same name for more than a decade on a similar product. AI FIRMS FIRE BACK – Suno and Udio, the two AI music startups sued by the major record label last week over allegations that they had stolen copyrighted works on a mass scale to create their models, fired back with statements in their defense. Suno called its tech “transformative” and promised that it would only generate “completely new outputs”; Udio said it was “completely uninterested in reproducing content in our training set.”REVENGE PORN CLAIMS – Diplo was sued by an unnamed former romantic partner who accused him of violating “revenge porn” laws by sharing sexually-explicit videos and images of her without permission. NYPD confirmed to Billboard that a criminal investigation into the alleged incident was also underway. DISCO v. DISNEY – A California judge refused to dismiss a lawsuit filed by the Village People that claims the Walt Disney Co. has blackballed the legendary disco band from performing at Disney World. Disney had invoked California’s anti-SLAPP law and argued it had a free speech right to book whatever bands it chooses, but a judge ruled that the company had failed to show the issue was linked to the kind of “public conversation” that’s protected under the statute. WRIT ME BABY ONE MORE TIME – More than two years after Mathew Rosengart helped Britney Spears escape the longstanding legal conservatorship imposed by her father, the powerhouse litigator is no longer representing the pop star. In a statement, the Greenberg Traurig attorney said he was shifting to focusing on other clients: “It’s been an honor to serve as Britney’s litigator and primarily to work with her to achieve her goals.” PHONY FEES? – SiriusXM was hit with a class action lawsuit that claims the company has been earning billions in revenue by tacking a shady “U.S. Music Royalty Fee” onto consumers’ bills. The fee — allegedly 21.4% of the actual advertised price — represents a “deceptive pricing scheme whereby SiriusXM falsely advertises its music plans at lower prices than it actually charges,” the suit claims. DIVORCE DRAMA – Amid an increasingly ugly divorce case, Billy Ray Cyrus filed a new response claiming that he had been abused physically, verbally and emotionally by his soon-to-be-ex-wife, Firerose. The filing actually came in response to allegations that it was Cyrus who had subjected Firerose to “psychological abuse” during their short-lived marriage. UK ROYALTIES LAWSUIT – A group of British musicians filed a joint lawsuit against U.K. collecting society PRS, accusing the organization of a “lack of transparency” and “unreasonable” terms in how it licenses and administers live performance rights. The case, filed at London’s High Court, was brought by King Crimson’s Robert Fripp, as well as rock band The Jesus and Mary Chain and numerous other artists.
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The following is an excerpt from the newly published book Rockin’ the Kremlin: My Incredible True Story of Gangsters, Oligarch, and Pop Stars in Putin’s Russia written by David Junk with Fred Bronson, out now on Rowman & Littlefield. David Junk was the first CEO of Universal Music in Moscow, helping promote artists from Elton John to Mariah Carey in Russia and signing t.A.T.u. and Alsou to Universal. Junk also opened the first Universal Music office in Kyiv, Ukraine, and developed music reality shows for TV in Ukraine. Fred Bronson is a journalist, author and regular contributor to Billboard. He has written three books about the Billboard charts and covered American Idol and Eurovision for Billboard extensively.
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Adapted from the book Rockin’ the Kremlin: My Incredible True Story of Gangsters, Oligarch, and Pop Stars in Putin’s Russia by David Junk with Fred Bronson. Used by permission of the publisher Rowman & Littlefield. All rights reserved.
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The Kiss Heard ‘Round the World
I knew the Moscow-based duo t.A.T.u. was going to be my international breakthrough from the first moment I saw their controversial video.
I loved their music. The dynamic vocals were haunting and the music had an infectious dance beat. The lyrics were provocative. There was no act like them anywhere in the world. But I had to convince my Russian marketing and sales team to support me. An act like t.A.T.u. was going to be a risk for everyone. Russia was still a very intolerant society, despite the Soviet Union being long gone. This band would be pushing boundaries.
I gathered the team in my office, plugged t.A.T.u.’s VHS tape into my TV hanging on the wall, and we watched it together. Everyone’s mouth dropped watching the infamous scene when Julia and Lena kiss. “No! You cannot sign them. Are you crazy, David?” Asya, my very wise marketing director stood up and shouted. “We are going to catch so much hell for this, from everybody!” I argued, “Don’t you love how they’re rebelling against authority? That’s all that kiss is. They’re teenage symbols of a new Russia, leaving the past behind.” That’s when my excellent radio promoter Sasha Rodmanich spoke up. “The song is a hit.” At a record label, that’s all that matters. So with Sasha’s promise the song would be a hit at radio, I was able to rally the team, including Asya, who would have to carry most of the burden. We were going to pursue signing t.A.T.u. But she was right to be cautious, since I was taking Universal into uncharted territory.
Homosexuality was a crime in the old Soviet Union and under Russian law, promotion of LGBTQ issues was considered propaganda, punishable with time in prison. Gay Russians have always been treated as outcasts and subversives by the authorities. So when Julia and Lena openly embraced gay rights and kissed in their first music video, I knew I had to make a quick decision that could change my music career forever: should I sign the most exciting new music act in Russia (and maybe the world) to Universal, even if it meant risking my visa status as an American working in the country or even possible jail time because I angered the two most powerful institutions in the country – the government and the Russian Orthodox Church?
Both frowned on all things LGBTQ. Or should I shy away from the controversy and miss the best opportunity I would ever have to promote a Russian act around the world, perhaps achieving my wildest dream, being the first record executive to promote a Russian band in America? There was no way I was going to pass on this. I kept my fingers crossed that I wouldn’t end up in a Russian prison.
To sign t.A.T.u., I had to deal with Ivan Shapovalov, a high IQ provocateur in the mold of Sex Pistols manager Malcom McLaren. He was a manipulative, edgy person, whose eyes would pierce you while you were in conversation. The band was his idea, and he brought in songwriters to craft the anarchistic message. He auditioned many girls and ultimately chose two Moscow teenagers: Lena Katina, a firey redhead with a head of wild curls, considered the reasonable one; and Julia Volkova, the sassy brunette manga comic-looking foul mouthed and funny one. Both had worked in television and music projects as child actors.
I didn’t know what to expect from Ivan because negotiations in Russian show business were never predictable. After the fall of the Soviet Union, Russia was chaotic, corrupt, and dangerous, like Chicago was in the 1930s when Al Capone was declared the FBI’s public enemy No. 1. Russia was the wild, wild east, and their music industry had no rules or standards.
Common Western business practices like royalty payments and songwriter copyrights were foreign concepts. Payola was rampant. The government didn’t support the music industry or musicians’ rights.
The biggest obstacle was that 90 percent of all music sold in Russia was printed on counterfeit compact discs, while music legally released by record companies accounted for the other 10 percent. Musicians only made money from sales of the official releases, so this situation made it nearly impossible for artists to survive financially. The pirates who made the bootleg CDs sold them in illegal outdoor markets and kiosks throughout the country while local authorities turned a blind eye to all of it. Worse yet, the pirates were controlled by organized crime groups that used the proceeds from counterfeit sales to fund a host of illegal activities, including selling weapons to terrorists and sex trafficking.
Ivan was a tough negotiator, and he knew how badly I wanted to sign the band. My rival Sony Music had caught wind of my efforts and started courting him while I was trying to close the deal. I knew I had to play to his ego, so when he arrived at our Universal office to discuss a record contract I made sure Asya gave him a tour of our marketing and sales department where large cut-out posters of Elton John, U2, and Bon Jovi’s new album releases were hanging on the wall along with dozens of other posters of Universal’s vast roster of superstars, demonstrating that we were an international label, not a small Russian one. That was my best leverage for negotiations. “Why should I give you the rights to t.A.T.u.?” Ivan asked, staring at me with his wild eyes. “I don’t need a record label; the pirates will steal the music from you anyway.” He was right about that. Piracy would limit our sales. I told Ivan, “If you sign with me I guarantee that t.A.T.u’s album would will be promoted by Universal not just in Russia but also internationally.” That persuaded him. Universal was one of the most prestigious American brands in the world and the largest record company, and he wanted t.A.T.u. to be associated with the best Western artists.
Ivan demanded $100,000 for the rights to t.A.T.u., which would have made it the biggest record deal in Russian show business history. He was adamant that he couldn’t accept anything less. I didn’t believe him until I discovered that he had already sold the rights to the first single to a record label controlled by Russian gangsters and they had already manufactured it.
I got angry with Ivan, and he told me that he had made a mistake, that he was new to show business and didn’t know anything about song rights. The gangsters had initially paid him $5,000, but now that he was in talks with Universal, they wanted significantly more to give the rights back. I didn’t have much choice because this wasn’t just any song. This was the hit single with the notorious music video that would launch t.A.T.u. internationally and top music charts worldwide. If I didn’t get the single rights back from the gangsters at that exorbitant price, there would be no t.A.T.u.
I had to keep my bosses at Universal’s headquarters in the dark about some of the unsavory aspects of the deal. Luckily, they thought I had done a good job selling American rap and hip-hop music in Russia, with Eminem being my biggest success.
Still, $100,000 was outrageous for an artist from that part of the world and would be the biggest payout in Russian and Eastern European history. None of my colleagues who ran Universal subsidiaries in Eastern Europe had ever requested that much. Ultimately, my London bosses agreed to the amount, and I used the money to pay Ivan, who paid off the gangsters.
With Universal Russia behind the duo, t.A.T.u.’s debut album, 200 Po Vstrechnoy, got wider distribution and became a phenomenal success in every Russian city and former Soviet republic, including Armenia, Georgia, Kazakhstan, Belarus, and Ukraine. Julia and Lena topped the charts everywhere in the region, and t.A.T.u.’s first song and video hit No. 1 simultaneously on pop radio and MTV in 2000.
Their music first appealed to gay and lesbian youth, then spread to a much larger audience of disaffected teens. They took off like a wildfire throughout the former U.S.S.R. Stadiums were sold out and crowds of fans were worked up into a frenzy with Julia and Lena’s provocative performances. It was Russia’s version of Beatlemania. My Eastern European colleagues took notice of that because they all had sizable teenage Russian-speaking populations in their countries and sensed a hit for their markets. On that score, t.A.T.u.’s album delivered, topping the charts in Hungary, the Czech Republic, Slovakia, and Poland.
We were getting ready to release 200 Po Vstrechnoy in Germany, but I knew that t.A.T.u. would never go beyond Russian-speaking audiences in Eastern Europe unless they recorded in English for Western markets.
We needed a partner to help make a t.A.T.u. album in English. We needed to rewrite and re-record the songs, and we needed a bigger, more powerful partner ally inside of our parent company Universal Music Group to shepherd us through the process. I wanted Universal’s full weight behind the release.
I went on a road tour of all of all the company’s offices in search of help. We told everyone that t.A.T.u. was on the way up, selling out concerts everywhere and climbing the charts in Bulgaria, Poland, and Hungary. If they had an English-language release, I said, they could become a global act. Unfortunately, nobody was interested in partnering with us.
Wherever we went – Los Angeles, Nashville, New York, London, anywhere Universal had an office – the answer was always no. When people from the label saw footage of them kissing on stage, it made them uncomfortable, and when Lena and Julia invited boys onstage to do the same, my colleagues were too nervous to support us.
Another issue for the executives was my goal of breaking t.A.T.u. into the American market. They would have to compete with American pop stars like Britney Spears and Christina Aguilera, boy bands like the Backstreet Boys and *NSYNC and big pop acts from the U.K. My colleagues arrogantly dismissed the potential for a band not from America or the U.K. to have a hit in their markets.
My road tour was a bust, so I went back to Moscow and mailed packages with the Russian album and videos out to all the remaining labels in the Universal Music Group that we hadn’t visited. We kept getting turned down. It felt like we would never find a partner – until suddenly I received a phone call from Interscope Records in Los Angeles, a subsidiary label of Universal and the hottest record company in America.
I was surprised that Interscope was interested. Their roster included No Doubt, Marilyn Manson, the Black Eyed Peas, Snoop Dogg, Dr. Dre, 50 Cent, Eminem, Mary J. Blige, Nelly, and Blink-182 – some of the most popular acts in the world. They really didn’t need us. Still, I had done well selling their artists in Russia, so there was already a symbiotic relationship in place.
I had sent our package to the label’s co-founder, Jimmy Iovine. He was the most powerful record executive in the world, and before forming the label, he had produced some of the most prominent artists of all time, including Tom Petty, U2, and Stevie Nicks. He sent t.A.T.u.’s Russian-language CD to British producer Trevor Horn, who had helmed very successful records for artists like Seal and Yes. He had also been in the Buggles, whose “Video Killed The Radio Star” was the first video ever shown on MTV.
He loved the t.A.T.u. CD and was very enthusiastic about working with Julia and Lena. He had been a ground-breaking pioneer in the U.K. music industry, producing the openly gay act Frankie Goes To Hollywood. I suspected that t.A.T.u. breaking through boundaries in Russia and Eastern Europe hit a nerve with him. He just had one question: “Can they sing in English?”
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For the past several years, the organizations that collect public performance royalties have been growing far faster than most of the music business, especially in Europe. Revenue at the French collective management organization SACEM rose 34% in 2022, while its UK counterpart, PRS for Music, doubled its revenue since 2014. The growth is fast enough to make the whole alphabet soup of initials exciting to the point of attracting investment-backed rivals to the traditional nonprofits — think BMI, which just took on outside investment, or Kobalt’s AMRA.
Until about a decade ago, the traditional collective management organizations, known as CMOs, licensed rights within a given territory for compositions played in public — at concerts, in stores and restaurants, on television and radio, and eventually from streaming services. (Some also collect for mechanical rights or neighboring rights and remit that to rightsholders through related organizations.) And while European CMOs still do that, for the last decade they have also competed against one another to represent and license online rights in Europe and some other territories (not including the U.S.). This has made the most complicated part of a complex business even harder to understand, since it allows publishers and songwriters to assign different kinds of rights in different territories to different CMOs. In the U.S., for example, songwriters can join ASCAP or BMI, then assign certain rights in other territories to different organizations, in order to collect that money directly instead of indirectly, although only very successful creators tend to do this.
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As the pandemic subsided in 2021, CMO growth turned to hypergrowth, fueled by increases in online revenue, the reopening of restaurants and stores, and the roaring comeback of the concert business. The annus mirabilis was 2022, especially for the European societies that represent the most U.S. repertoire: SACEM grew 34%, PRS 23%, Sweden’s STIM 20% and Germany’s GEMA 13%. Now growth is coming down to earth, but it’s still healthy — last year, revenue grew 5% at SACEM (where distributions grew 19%), 12% at PRS, 8.4% at GEMA and 14.2% at STIM. So I was eager to write a column about how important this is for songwriters and the music publishing business that supports them, what this means for the future, and how creators can figure out which CMO would be the best for them. Instead, I ended up spending a few days staring into an abyss of uncertainty.
Growth in CMO revenue means that either the publishing business is growing, a given CMO is faring better than its competitors, or some mix of the two. But although the European Union mandates transparency, each CMO accounts for revenue so differently that it’s very hard to compare them. For example, STIM categorizes revenue collected from online licenses in foreign territories as “foreign income”; SACEM considers this “online”; while PRS treats this income as online when it licenses rights directly and foreign when it doesn’t. It gets considerably more complicated from there.
As competition among societies heats up, the most important few are pulling away from the rest. PRS, GEMA and STIM operate ICE as a Berlin-based pan-European licensing hub, and most publishers and other societies license online rights in Europe and other countries either through it or SACEM, which is a hub in its own right. That means at least some of the growth at those societies is coming at the expense of their European competitors, although it’s hard to tell how much.
Even as CMOs compete, they also cooperate in various ways — including remitting money to one another. Some of the success of societies actually depends on their rivals: GEMA members will make more if SACEM maximizes the money it collects on their behalf in France, for example. The closest analog I can think of is world trade, where countries drive prosperity by boosting the success of their counterparts while also trying to outcompete them. Consider that every CMO wants to account to its members faster than its rivals, but final accounting is only possible once numbers come in from other markets. It’s a game that can only be won by both beating and boosting rivals. At this point, the abyss starts to stare back.
Perhaps since the CMOs depend so much on one another, the top executives agreed on a few points — most important that growth will come back to earth and that as it does, cost efficiency will become more important. “I think we will continue to see growth but not at as fast a pace as during the pandemic,” STIM CEO Casper Bjørner told me. As that happens, “I think cost ratio becomes really important,” GEMA CEO Tobias Holzmüller added, referring to the percent of revenue that goes to expenses, which has historically been between about 10% to 15% and is generally declining. And since the CMOs collect relatively similar per-play payouts from streaming services, Holzmüller said, “You compete on cost and services.”
SACEM CEO Cécile Rap-Veber said the same: “What matters to me is value for our members.” PRS CEO Andrea Czapary Martin has also prioritized efficiency, setting a goal of getting the PRS cost ratio below 10%, which it did in 2023 for the second year in a row, in addition to cutting its administration rate for royalties from online services by 20%. “We can do this,” Martin said recently, “because we are surpassing our targets.” The idea is that, amid the accounting chaos, cost ratio might emerge as a comparison that’s easy for songwriters and publishers to measure.
Cost ratio may be an easy way to compare CMOs — but even that gets complicated because different sources of royalties come with very different costs. For example, general licensing revenue for music played in stores or restaurants is relatively expensive, since signing licensing deals with new businesses is relatively labor intensive. Revenue that comes in from online services costs less, while income from foreign counterparts is cheaper still. That gives an advantage to CMOs that depend more on foreign revenue relative to their size — and it helps STIM and PRS reduce their costs. (This isn’t the whole story; these societies are also very well-run.) It also makes SACEM’s 10.76% cost ratio even more impressive.
For all their competition, in fact, the big European CMOs aren’t always even playing the same game. STIM gets 73% of its income from foreign and online royalties, so to some extent its success is tied to that of Swedish songwriters who write for global pop stars, although it has to make sure they can’t get a better deal from another CMO. GEMA is at the opposite end of the spectrum — more than a third of its revenue comes from general and concert licensing, for which it takes in more than its rivals, presumably partly because the German economy is the biggest in Europe. PRS collects more online and foreign income, partly because English-language repertoire travels globally. SACEM, the oldest CMO and the biggest outside the U.S., benefits from operating its own hub. Breaking this down to determine the best deal for a given creator gets even harder, and it may just depend on which of those specialties offers the most appealing advantage.
That doesn’t mean competition isn’t working, though — even if some executives said that they measure themselves against their performance in previous years more than that of rivals. “Competition has forced a lot of us to improve our efficiency,” Rap-Verber told me when SACEM announced its results. And that benefits creators who join any CMO.