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The Ivors Academy, a U.K.-based songwriter advocacy organization, has named Roberto Neri as its new CEO.
The organization was previously helmed by Graham Davies, who is now the leader of the Digital Media Association (DiMA) in the United States, and interim CEO Charlie Phillips.
Neri has worked in the music publishing business for over 20 years. Previously, he held C-suite roles as CEO of Believe’s publishing operation and CEO and COO of Utopia Music Services. His other previous positions include executive vp/head of business development at Downtown Music, founder/CEO of Eagle-i Music, vp of international at Bug Music and publishing relations manager at PRS for Music.
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Additionally, Neri has erved as chair of the Music Publishers’ Association and director of the UK Music, PRS for Music, MCPS and PPL/PRS boards. He is the trustee of Music for My Mind, a charity that provides music therapy for dementia patients and their caretakers.
Established in 1944, The Ivors Academy — previously known as the British Academy of Songwiters, Composers and Authors (BASCA) — advocates for songwriters’ best interests in local politics and in the music business. In recent years, it has campaigned to introduce the EU copyright directive, amplified the #BrokenRecord campaign to call out unfair streaming economy practices and partnered with YouTube Music to host a songwriting camp for members. The organization is perhaps best known for its annual songwriter award ceremony, the Ivor Novello awards, one of the biggest nights in music publishing in the United Kingdom.
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“On behalf of the Board and Academy, I am thrilled to welcome Roberto Neri as our new CEO,” said Tom Gray, the Ivors Academy chair. “He brings a huge breadth of industry experience, knowledge and leadership skills. His commitment — and ours to him — is to be the most influential voice for songwriters and composers in the world.”
Neri added, “I am deeply honored and humbled to step into the role of CEO of The Ivors Academy. It is a dream job to fervently advocate for and represent songwriters and composers, who I have been fortunate enough to represent for over two decades globally. I believe now, more than ever, is the pivotal moment to ensure music creators’ interests are protected, championed, valued and recognized for their central and indispensable role in the success of the entire music business.”
GYROstream, the Australian-owned music distribution company, assembles a new-look leadership team at home and abroad, as the business pursues its goal to become the country’s No. 1 net exporter of music, Billboard can exclusively reveal.
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Leading the changes is Adrian Burke, former label partnerships lead at Spotify Canada, who is tapped to steer its North America activities, which include GROUP SPEED, GYROstream’s recently-launched boutique artist services company.
Based in Toronto, Burke is named GM at GROUP SPEED, with duties for guiding strategic direction for the new business in North America and liaising with the group’s team to help “elevate artist careers,” reads a statement.
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Burke completed a seven-year stint with Spotify, where he cultivated key partner relationships for the streaming giant, developed global artist campaigns and implemented data-driven strategies to help create millions of incremental streams for artists worldwide, reads a statement.
Burke is one of several new faces at GYROstream, which, across all brands, boasts 39 employees in seven countries, including company co-directors Andy Irvine (CEO), Viv Mellish (CMO) and Alex Wilson (head of distribution and customer service).
New faces at the tech business include Harry Young, who steps into the newly-created role as senior A&R manager role across the group, working alongside Burke. Young served in A&R capacities for more than a decade with Dew Process Records + Publishing, where he discovered Mallrat and worked with a roster that includes Spacey Jane, Tkay Maidza, Allday, YNG Martyr, Tyne-James Organ, Alice Ivy and more.
The fleshed-out A&R team includes Benjamin James, now appointed as global head of A&R across all brands; and Australia-based A&R and streaming partnerships coordinators Molly Jackson and Taylor Dwyer, a new recruit based in Los Angeles with a primary focus on GROUP SPEED.
Among the key arrivals at GYROstream is trailblazing digital strategist Alison Bremner, who is named as head of artist marketing strategy, a prominent music post working across both GROUP SPEED and GYROstream. Bremner is recognized for her part in @thexhan’s success on TikTok as the short-video platform’s most-followed creator in Australia with 18 million fans, and for facilitating partnerships with Gucci, Red Bull and other blue-chip clients.
(From left to right) GYROstream’s Alex Wilson, Adrian Burke, Viv Mellish and Andy Irvine.
GYROstream
Based in Brisbane, GYROstream expands its core operations team at its headquarters, adding staff in customer service, distribution operations, product development and royalty management, topped off with a fresh website.
“Expanding our artist services offering globally through GROUP SPEED and opening it up to new markets as a standalone product is the next evolution of our business and we can’t wait to see what this team achieves together,” comments group CEO Irvine. Exporting Australian and New Zealand music to the world is a critical piece. “We believe we are well on the way to becoming Australia’s leading net-exporter of recorded music within five years and this new team are determined to achieve that goal,” he continues.
Founded in the Queensland capital in 2018, GYROstream represents thousands of artists across Australia and New Zealand for artist services and global digital distribution, and delivers to upwards of 100 digital platforms, including Spotify, Apple, TikTok, Amazon and YouTube.
In 2021, GYROstream took out The Music Network’s Tinnie award for Music Distributor of the Year; the following year launched Find My ISRC, a tool to assist DIY artists, managers and labels to keep track of their recordings online; and in 2022 established the GYROrecords label.
Today, its suite of activities include royalty payment splits, publishing administration via GYROpublishing, publicity through GYROpr, digital marketing through GYROdigital, and the white-label distribution platform DistroDirect.
Key staff have made the long haul for SXSW 2024 for DistroDirect’s official showcase event next Tuesday, March 12 at Las Perlas, in Austin, TX.
Sony Music is quickly fighting back against a discrimination lawsuit filed by a former assistant to Columbia Records chief executive Ron Perry over race-conscious hiring policies, saying the allegations are “contradictory and false” and are designed to “harass her former employer.”
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The case, filed last week by Patria Paulino, claims that she was forced to resign after she pushed back on hiring practices that allegedly discriminated against white applicants. She claims she was “explicitly told that she could only hire Black candidates” because Perry wanted bolster the appearance of diversity.
But in a blistering motion on Wednesday – an unusually fast response for any lawsuit – attorneys for Sony and Perry called the accusations “contradictory and false” and asked a federal judge to toss them out of court.
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“She alleges … that defendants both discriminated against her because they preferred white employees but also constructively discharged her because she would not play along with their preference for non-white employees,” the label’s lawyers wrote, adding the italics themselves for emphasis. “In reality, plaintiff worked for Sony … for less than five months, performed poorly, and was a willing participant in the entirely legal hiring practices she now alleges were discriminatory.”
Sony’s response argued that far from being effectively fired, Paulino “voluntarily resigned after receiving unfavorable performance feedback.” The label said she had filed her case simply “to harass her former employer and boss, who sought only to help her succeed in her job.”
Though it sharply criticized the merits of the case, Sony’s filing actually attacked the case on simpler grounds: That the federal court where she filed the case cannot procedurally hear it. The company says there is not the required cross-state jurisdiction for the case to be handled in federal court.
In a statement to Billboard, Paulino’s attorney Erica L. Shnayder stressed that Sony’s motion “involves a procedural issue” and “has no bearing on the factual allegations which are supported by text messages.” Shnayder added: “The case will proceed forward.”
Paulino sued on Friday (March 1), claiming that after she was hired by Sony in late 2022, she was repeatedly told she could not hire white candidates for a vacant assistant role in Perry’s office. She says that Perry had been hit with “multiple racial discrimination complaints by former employees” and that he and the company wanted to “have more color in his office.”
“Although numerous Caucasian candidates were qualified for the position, they were removed from consideration because of their race,” Paulino’s lawyers wrote in their complaint.
The lawsuit came in the wake of a high-profile Supreme Court ruling last year that outlawed the use of race-conscious admissions in higher education, commonly known as “affirmative action.” Though that ruling didn’t directly deal with hiring or with the state laws at issue in Paulino’s case, it has led to overall increased scrutiny of corporate practices aimed at diversity, equity and inclusion. Last week, CBS and Paramount were hit with a similar lawsuit, claiming they had broken the law by using diversity quotas that discriminated against white men.
Despite the directives to aim for diversity, Paulino’s lawsuit claims she “continued to recommend qualified Caucasian applicants” for the role. At one point, when she advanced a particular white candidate, she says that another Sony employee told her in writing: “We can’t hire another white Jewish girl unfortunately.” Her lawyers say Sony conducted “sham” interviews with candidates of all backgrounds, but in reality was determined to only hire a Black candidate.
In March 2023, Paulino says she was effectively forced to resign from her job. A Sony employee allegedly told her to do so because she “was not really working out,” but she says the move was made “in retaliation for plaintiff’s opposition to defendants’ discriminatory hiring practices.”
As noted in Sony’s response, the lawsuit also includes other allegations beyond the hiring policies. In addition to claiming the company discriminated against white job seekers, Paulino (who says she is Hispanic) also claims that the company also discriminated against her on the basis of her race.
A spokesperson for Sony Music declined to comment on the lawsuit’s allegations, citing the pending nature of the case.
Attorneys for Linkin Park are pushing to end a lawsuit that accuses the band of refusing to pay royalties to an ex-bassist who briefly played with the band in the late 1990s, saying such claims have been repudiated for “over two decades.”
In a motion to dismiss the case filed Tuesday (Mar. 5), lawyers for Mike Shinoda and other Linkin Park members say Kyle Christner’s lawsuit is “rife with defects.” Among them, they say, is that the statute of limitations on such claims has “long since passed.”
“Plaintiff claims that defendants … owe him money because he was a member of the band for, at most, eight months, 25 years ago, and was not paid for his ‘contributions’,” writes the band’s lead counsel, prominent music litigator Edwin F. McPherson. “He asserts three claims, each of which fails.”
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Christner sued Linkin Park in November, claiming he had been a member of the band for several months in 1999 until he was “abruptly informed” that he had been fired shortly before the band signed a record deal with Warner Records. He accused the band of continuing to profit from songs he helped create, while effectively erasing his involvement.
“Christner has never been paid a penny for his work with Linkin Park, nor has he been properly credited, even as defendants have benefitted from his creative efforts,” his lawyers wrote in the lawsuit.
In addition to Shinoda, the lawsuit also named Linkin Park’s other living members (Rob Bourdon, Brad Delson and Joseph Hahn), as well as its business entity, Machine Shop Entertainment, and the band’s label, Warner Records.
The dispute was seemingly triggered by an anniversary re-release of the band’s smash hit 2000 debut album Hybrid Theory, which holds the lofty distinction of being the best-selling rock album of the 21st century. Christener claims the special 2020 box set included several songs to which he had contributed, including a never-before-released demo track that has amassed 949,000 views on YouTube.
But in Tuesday’s response, the band’s lawyers say those allegations are deeply flawed. Among other issues, they say the lawsuit failed to clearly identify what songs Christener was involved with and instead relies on “open-ended” statements like that he’d “likely” been involved in “numerous” songs. “Defendants cannot reasonably be expected to know how to respond to the [lawsuit] without knowing which copyrights are being addressed,” the complaint reads.
For the songs that were properly identified, the band’s attorneys say the lawsuit is clearly barred by the statute of limitations. Copyright ownership disputes must be filed within three years, they say, adding that the band has obviously refused to acknowledge his claims for far longer than that.
“Defendants repudiated Plaintiff’s purported ownership in any and all of the works mentioned in the [lawsuit] more than three years before Plaintiff filed this lawsuit — and indeed for over two decades,” the band’s lawyers wrote.
Even for the never-before-released songs, Linkin Park says Christener missed his window: “The Box Set was released in October, 2020; this action was filed on November 8, 2023 — over three years later.”
Christener’s attorneys did not immediately return a request for comment.
Black Music Action Coalition (BMAC) founder Willie “Prophet” Stiggers has joined the founders board of the Neil Lasher Music Fund at Caron Treatment Centers, which provides financial assistance to music workers for drug and alcohol addiction treatment. With Stiggers in the fold, BMAC and the fund will work together to help address the stigma of […]
The National Music Publishers’ Association (NMPA) warned some of its members on Tuesday that the organizations’ license with TikTok ends April 30 and it “do[es] not anticipate” to renew, extend or form a new license with the platform, according to a letter obtained by Billboard.
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This means that a lot more music could be removed from TikTok come May, spreading the reach of recent music takedowns far beyond what users have already experienced since Universal Music Group began pulling its recorded music and publishing catalogs off the platform in the last month. The NMPA license is used by a number of independent music publishers, but the organization has previously declined to specify which ones.
“Recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members,” says the organization in its letter to members.
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If publishers wish to continue to license their works to TikTok, the NMPA’s letter urges publishers using its license to “engage directly with TikTok to negotiate a license beyond April 30.” For those that wish to let the license lapse at the end of April, the NMPA says its attorneys are available to “discuss enforcement options.”
“It is important that all NMPA members understand that without a license in place, TikTok should not be using your musical works on its platform,” the organization wrote.
The NMPA negotiates its TikTok license an optional offering for its membership, allowing them to bypass the strain and cost of negotiating directly with the short-form video app. Though the major music publishers are part of the NMPA’s membership, they do not use the NMPA model license for TikTok and, instead, negotiate their deals directly.
David Israelite, the NMPA’s CEO and president, previously announced that the NMPA license was up for renewal in April, but this is the first time the organization has acknowledged that it will not be pursuing that renewal. “I’m only going to say two things about TikTok,” Israelite said at an Association of Independent Music Publishers’ event in Los Angels on Feb. 1. “The first is I think music is tremendously important to the business model of TikTok, and, secondly, I am just stating the fact that the NMPA model license, which many of you are using, with TikTok expires in April.”
The NMPA is known for its aggressive approach to licensing negotiations with social media sites, streaming services and gaming platforms. On Tuesday, it was announced that a federal judge will allow the NMPA’s multi-million dollar lawsuit against X to go forward, although it tossed some significant elements of the case. The NMPA has also similarly fought back against Twitch, Roblox, and Pandora in recent years.
Read the full letter to NMPA members below:
If you are receiving this Member Alert you are currently participating in a license with TikTok through NMPA’s 2022 model license opt-in.
NMPA is notifying all participants that these two-year licenses are set to expire on April 30, 2024.
Recently, the press has highlighted concerns around TikTok’s licensing practices, concerns that NMPA has heard directly from many of our members.
At this time, we do not anticipate that there will be an option to renew or extend the current NMPA licenses or participate in a new license with TikTok through NMPA.
NMPA members should make their own business determination whether to engage directly with TikTok to negotiate a license beyond April 30, 2024.
It is important that all NMPA members understand that without a license in place, TikTok should not be using your musical works on its platform.
Starting May 1, 2024, any members who are not licensed with TikTok and would like to discuss enforcement options can contact attorneys at NMPA.
If circumstances change prior to the expiration of the current TikTok licenses, NMPA will promptly notify members.
We are here to answer your questions.
Manhattan prosecutors made the stunning decision Wednesday (March 6) to drop a criminal case against three men accused of trying to sell stolen notes linked to the Eagles’ 1976 album Hotel California, with a judge saying Don Henley had “manipulated” prosecutors.
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At a hearing Wednesday, a New York judge dismissed the charges after prosecutors alerted him that newly uncovered evidence cast doubt on whether Henley’s notes had been stolen in the first place — the core defense advanced by Glenn Horowitz, Craig Inciardi and Edward Kosinski.
The disclosures came mid-way through a closely-watched criminal trial against the three men, in which Henley and longtime Eagles manger Irving Azoff had already testified. The proceedings had already run more than two weeks and had been expected to keep going until at least next week.
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The sudden reversal was sparked by Henley producing new evidence that had been previously withheld under attorney-client privilege. The new materials touched on whether a journalist hired in the 1970s to write a book about the Eagles, Ed Sanders, had legitimately come into possession of Henley’s notes.
At a hearing in open court on Wednesday, Justice Curtis Farber sharply criticized Henley and Azoff’s conduct: “It is now clear that both witnesses and their lawyers … used the privilege to obfuscate and hide information that they believed would be damaging to their position that the lyric sheets were stolen.”
The judge said he was also troubled that prosecutors had been “manipulated” into bringing the charges, and questioned why they had not more thoroughly vetted the accusations and the evidence. But he praised them for dropping the case once new evidence had come to light.
“Albeit late, I commend the prosecution for refusing to allow itself or the courts to be further manipulated for the benefit of anyone’s personal gain,” Farber said. “District Attorney Bragg and the prosecutorial team here, while eating a slice of humble pie, are displaying the highest level of integrity in moving to dismiss the charges. I am impressed.”
In a statement to Billboard following Wednesday’s hearing, Henley’s attorney Dan Petrocelli said: “The attorney-client privilege is a foundational guardrail in our justice system, and rarely, if ever, should you have to forsake it to prosecute or defend a case. As the victim in this case, Mr. Henley has once again been victimized by this unjust outcome. He will pursue all his rights in the civil courts.”
The Manhattan District Attorney’s office declined to comment.
Horowitz, a rare book dealer, Inciardi, a curator at the Rock & Roll Hall of Fame, and Kosinski, a memoriabila auctioneer, were all charged in 2022 with conspiracy over accusations that they tried to resell and hide the origin of the handwritten notes, penned by Henley during the creation of Hotel California. Manhattan District Attorney Alvin L. Bragg, Jr. said the trio had “made up stories about the origin of the documents and their right to possess them so they could turn a profit.”
But the three men always maintained that they had done nothing wrong. Their core argument: That the alleged “thief,” Sanders, had legally obtained them in the 1970s in the process of writing a never-released book about the Eagles. If the notes were never stolen, the three argued, how could they be charged with re-selling stolen property?
The trial kicked off last month, with Inciardi’s attorney telling the judge that prosecutors had “distorted the history” to charge innocent men and the DA’s office would be “apologizing at the end of this case.” Henley later testified that the he had not willingly given away the notes, saying they were “something very personal, very private.”
But at Wednesday’s hearing, Justice Curtis said that Henley had recently handed over more than 6,000 new pages of emails and other disclosures that contained new information about how Sanders came to own the notes. Such “jarringly late disclosures” violated Horowitz, Inciardi and Kosinski’s constitutional rights, the judge said.
“A review of these newly disclosed materials has demonstrated and highlighted Mr. Henley and Mr. Azoff’s use of the privilege to shield themselves from a thorough and complete cross-examination,” Justice Farber said at the hearing.
“Accordingly, indictment 72426 of ’22 against each defendant, Glenn Horowitz, Craig Inciardi and Edward Kosinski is dismissed,” the judge said.
In a statement to Billboard, Horowitz’s attorney Jonathan Bach said: “We are glad the DA’s office made the right decision and finally dropped this case. It never should have been brought. Mr. Horowitz looks forward to carrying on with his important work.”
Attorneys for the other two defendants did not return requests for comment.
At the end of February, TikTok took down every song in which Universal Music Publishing Group owns a share, a complicated step in the escalating showdown between the two companies that started a month earlier during the week before the Grammy Awards.
We are now in uncharted territory: Never before has a major label used the “nuclear option” to withdraw both recorded music and publishing rights from a platform — an especially dramatic step because it includes any song in which UMG owns even a small share. (By Billboard‘s estimates, it affects over 60% of the most popular TikTok songs in the U.S.) What most people don’t know is that these negotiations might perhaps also be affected by a Feb. 9 decision from the Munich Regional Court about the German implementation of the 2019 European Union Directive on Copyright in the Digital Single Market — the Urheberrechts-Diensteanbieter-Gesetz (UrhDaG). It will certainly shape future negotiations like this.
The case involved the Berlin-based film distributor Nikita Ventures, which operates YouTube channels and, coincidentally, TikTok. And although it wasn’t covered much by English-language press, it shows that negotiating leverage is gradually shifting from platforms to rights holders. “This verdict,” Matthias Lausen, a founding partner of the Lausen law firm, who represented Nikita told me, “shows that there is no safe harbor in Europe anymore for platforms.”
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In the case, Nikita said that it offered to license its content to TikTok in early 2022, at a cost of three euros per thousand views, an amount based on a published rate from GEMA, the German collecting society. (Licensees often seem to pay less than this.) By summer, TikTok had not responded with a counteroffer, and Nikita said that the content it had asked TikTok to block was available until August. TikTok said in court that it was still negotiating, that its filtering system is compliant with the law and that it responded to takedown notices. The court essentially ruled that TikTok didn’t make a best effort to negotiate, though, and held the company liable for infringement, with damages to be determined, plus required it to provide information about how many times the content in question was accessed, as well as its resulting revenue and profit.
Why does this matter? Until now, the U.S. Digital Millennium Copyright Act and laws like it have limited the leverage of rights holders in negotiations. Platforms that make available content uploaded by users have been free to build audiences, and businesses, as long as they have no direct knowledge of infringement and respond promptly to takedown notices filed by copyright holders. This has given platforms what some might call a “Free Ride,” and on a Feb. 28 UMG earnings call chairman and CEO Lucian Grainge said “there must not be free rides for massive global platforms such as TikTok.”
The 2019 European Copyright Directive was intended to address this, and it requires online platforms to make their “best efforts” to license content, as well as block content they haven’t licensed once rights holders have given them the necessary information. But this is the first court decision based on it.
Nothing will change overnight. The scope of this decision is limited, platforms could potentially get around it by better documenting their negotiations with rights holders, and it’s hard to imagine it will have a substantial effect on UMG’s negotiations with TikTok. But it shows that Europe is serious about forcing online platforms to negotiate on an even playing field, which should result in more favorable deals. (Since European countries do not have class-action lawsuits or high statutory damages for copyright infringement, though, this will not lead to a gold rush of litigation.)
Much of that is in the future, and some of these deals will involve platforms that don’t even exist yet. To get a sense of how this might play out, though, imagine a video-based nano-blogging platform that allows schoolchildren to record minute-long covers of pop songs. (I’m making this up, of course, but it’s not the dumbest idea I’ve heard this year.) That platform would have to approach rightsholders about deals early and often, then take serious steps to block the content they ask it to. That means it would have to license content before it got big — not once it’s already too big to fail.
Even now, TikTok needs to make a “best effort” to take down UMG’s publishing catalog. The company took prompt action, so it’s likely to be in the clear there, although it will be interesting to see what happens with recordings that are sped up and slowed down. At a time when songs are sliced and diced by influencers, how elaborate does a best effort have to be? Could we find out in a case that involves this dispute? The odds are against it, but stranger things have happened.
For the past quarter century, rights holders have had a hard time negotiating on an even playing field, which has arguably pushed down the price of content for both online businesses and, through them, for users. That dynamic is changing — slower than rights holders want and faster than platforms prefer — but steadily all the same. It will be hard to measure this, because these big licensing deals by their nature are complicated and intransparent. Finally, though – for good or ill depending on what side you’re
JKBX, a promising music investment platform that allows songwriters and recording artists to sell their royalties to investors, opened its doors for business on Wednesday (March 6), bringing music industry veterans and high-profile investors into the nascent world of fan-powered music financing.
Founded in 2023 by Sam Handel and John Chapman of venture capital and private equity firm Dundee Partners, JKBX had been waiting for approval from the U.S. Securities and Exchange Commission.
Its numerous investors include such companies as Spotify, Live Nation, YouTube, Red Light Management and Bertelsmann Digital Music. Additional backing came from Galaxy Digital, Valor Equity Partners and Tyler and Cameron Winklevoss, sources previously told Billboard. According to a June filing with the SEC, JKBX had raised $16.1 million since January 2023.
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The company is headed by Scott Cohen, who built The Orchard into an independent distribution powerhouse and was Warner Music Group’s chief innovation officer from 2019 to 2022. Sam Thacker, a former independent singer-songwriter, is the chief operating officer. Whitney-Gayle Benta, previously the global head of artist & talent relations at Spotify, is the chief music officer. Scott Shipman, a veteran of such tech companies as eBay and Dapper Labs, is the chief legal officer.
JKBX sells royalty shares only to qualified purchasers as defined in Regulation A under the Securities Act. A qualified purchaser must satisfy one of four tests: has a net worth, or joint net worth with a spouse, exceeding $1 million (excluding the value of the primary residence, furniture and automobiles); has earned income exceeding $200,000 in each of the two most recent years, or exceeding $300,00 with a spouse’s income; has a professional certification or credentials for accredited investor status; or is a family client.
Regulation A allows JKBX to bring retail investors to an asset class that has rarely been open to anyone other than institutional investors. “Now that JKBX has secured qualification from the SEC for its offerings, the game changes substantially, and we can expect retail investors to get excited about the chance to own a piece of the music they personally connect with and gain exposure to this non-correlated alternative asset class,” Joe Gawronski, president and CEO of Rosenblatt Securities and a JKBX advisor, said in a statement.
JKBX currently lists 85 projects — 69 of which involve Ryan Tedder, the songwriter and producer best known as a member of the group OneRepublic. Tedder is a songwriter or producer on tracks by Adele, Jonas Brothers and Diplo that are offered on the platform.
At least initially, JKBX isn’t working directly with Tedder and other musicians. Instead, the company’s deals are with record labels, music publishers and catalog funds that own the copyrights behind the royalties offered on the platform. Tedder sold a majority stake in his publishing catalog to KKR in 2021 for a reported $200 million.
The current share prices produce approximately 3.5% return based on the information given on JKBX’s “offerings” web page: price per share, number of shares offered and annual royalties for either the last two or three full calendar years.
For example, JKBX is selling 200,000 shares of “Counting Stars,” written by Tedder and recorded by OneRepublic, for $31.37 apiece. The site gives royalties — songwriter royalties for mechanical, synch, public performance and other income sources — for two years: $261,497.39 in 2022 and $180,839.00 in 2021. With a share price of $31.37 and average annual royalties per share of $1.11, an investment in “Counting Stars” produces an expected annual return of 3.52%.
Share prices on JKBX are currently fixed, meaning a song’s return will fluctuate based on the amount of royalties paid out, not an increase or decrease in the price. JKBX intends to launch a secondary marketplace in 2024, according to the site’s FAQ section, that will allow investors to re-sell their shares.
A federal judge is allowing music publishers to move forward with a copyright lawsuit filed against X Corp. over allegations of widespread copyright infringement on the social media platform formerly known as Twitter.
In a split ruling Tuesday (Mar. 5), Judge Aleta A. Trauger tossed out major parts of the case, like the accusation that X itself directly infringed any music. But she allowed some of the lawsuit’s core allegations — that X essentially enabled illegal behavior by its users by refusing to crack down on them — to move ahead.
In one example, the judge ruled that the music companies could pursue their “particularly striking” allegation that Twitter had been less willing to crack down on users who had paid for “verified” status.
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“If X Corp. truly did allow some users to effectively purchase the right to be able to infringe with less severe consequences, then that was plausibly an instance of promoting X/Twitter’s use to infringe copyright,” the judge wrote.
The case against Twitter was filed in June by dozens of music publishers, who claim that users on the Elon Musk-owned site had infringed over 1,700 songs from writers like Taylor Swift and Beyoncé — a claim that, if proven, could put the social media giant on the hook for $255 million in damages.
The case was organized by the National Music Publishers’ Association, which has long argued that Twitter is the last major social media service that refuses to license music. TikTok, Facebook, Instagram, YouTube and Snapchat have all allegedly entered into such deals with publishers, providing a library of licensed music for users to legally add to their posts. The lawsuit claimed that Twitter had, instead, effectively allowed its users to supply such music illegally.
The case was filed by Concord, Universal Music Publishing Group, peermusic, ABKCO Music, Anthem Entertainment, Big Machine Music, BMG Rights Management, Hipgnosis Songs Group, Kobalt Music Publishing America, Mayimba Music, Reservoir Media Management, Sony Music Publishing, Spirit Music Group, The Royalty Network, Ultra Music Publishing, Warner Chappell Music and Wixen Music Publishing.
Twitter moved to dismiss the lawsuit in August, arguing that social media sites clearly do not directly infringe copyrights when users upload illegal material. And they argued that digital services also cannot be sued for so-called secondary infringement unless they take active steps to aid the illicit behavior: “In this case, plaintiffs do not allege that X encouraged, induced, or took affirmative steps with the intent to foster the infringement of plaintiffs’ works,” the company’s lawyers wrote at the time.
In Tuesday’s ruling, Judge Trauger partly agreed with Twitter’s arguments. She easily dismissed the allegations of direct infringement, citing recent Supreme Court precedents, and also ruled that the company could not be held liable for “vicarious infringement” — meaning it profited directly from allowing illicit materials on the site. She also ruled that the music companies could not accuse X of so-called contributory infringement simply by offering tools that could sometimes be abused by infringers.
“Many of the supposedly problematic practices that the plaintiffs identify are unremarkable features of X/Twitter generally that X Corp. has simply failed to fence off completely from infringers,” the judge wrote. “The plaintiffs have not identified any basis for concluding that X Corp. was obligated to make its service worse for everyone, just to punish the people who misuse it.”
But Judge Trauger said other alleged conduct, if ultimately proven, could put Twitter on the hook for damages. One such claim, she said, is the allegation that X committed contributory infringement by failing to crack down on “severe serial infringers” who “openly and obviously used the service as a tool for repeatedly posting infringing content.”
“If … there was a class of X/Twitter users who were brazenly using the platform as an infringement tool, and X Corp. made the decision to unreasonably withhold enforcement of its own policies against those users … then X Corp. could plausibly be held contributorily liable,” the judge wrote.
Another claim Judge Trauger allowed to move forward was that X took too long to respond to takedown notices from copyright owners: “If X Corp. engaged in egregious delays in responding to valid takedown notices, or outright ignored some notices that were both facially and actually valid, that could support liability.”
Notably, Tuesday’s ruling did not address the thorny issue of the Digital Millennium Copyright Act (DMCA), a federal law that provides sites like Twitter with immunity — a “safe harbor” — from litigation over material uploaded by their users, so long as they promptly remove it when asked. The music publishers say X clearly failed to do so; the site strongly denies that point.
Though X’s initial motion to dismiss the case did not invoke the DMCA, the company’s lawyers will undoubtedly do so at a later stage of the case now that some of the claims are moving forward. When they do so, the statute will provide X lawyers with another avenue for defeating the allegations that Judge Trauger refused to dismiss on Tuesday.
An attorney for X did not return a request for comment on Tuesday evening.
In a statement to Billboard, a spokeswoman for the NMPA said the group was “pleased” with the ruling: “The spread of rampant music piracy on the platform is obvious and unacceptable, and we look forward to securing just compensation for the songwriters and music publishers whose work is being stolen.”