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The Mechanical Licensing Collective (the MLC) has issued notices of intent to audit all digital service providers (DSP) that operate under the compulsory blanket license administered by the MLC since its inception in 2021.
This includes a slew of different companies that license music, including on-demand streaming services (like Spotify, Apple Music, Amazon Music, Tidal and Deezer), internet radio companies (like Pandora, Mixcloud and iHeart Radio) and music apps (like Ultimate Guitar, PianoTrax and WeavRun). The audits are intended to ensure the accuracy of reported and paid royalties beyond the measures already taken by the MLC.
A representative for the MLC says that it will update its members on the results of any DSP audits that it conducts and will “clearly identify any monies recovered in audits on the royalty statements it provides to members.”
The right for the MLC to audit (and to be audited itself) is stipulated in the Music Modernization Act (MMA). The landmark 2018 law created a new blanket license for musical work mechanicals, replacing the previous song-by-song licensing system that proved to be complicated and ineffective for both digital services and the music business. Because of issues with the old piecemeal licensing system, a pool of $427 million in unmatched and unpaid publishing royalties had formed. The MMA also established the MLC to divvy up these royalties — often nicknamed “blackbox” royalties — and administer the new blanket license moving forward.
The news of the MLC’s auditing plans arrives a month after Bridgeport Music, the company that represents George Clinton and Funkadelic, opted to exercise its right to audit the MLC. Bridgeport Music is best known for its bullish approach to copyright enforcement, once accusing more than 800 artists and labels of infringement in one lawsuit in the early 2000s. It was also a defendant in the controversial Blurred Lines lawsuit along with Marvin Gaye‘s estate, which is believed to have greatly widened what elements of a song are considered protected under copyright law.
“Ensuring DSPs have reported royalties accurately is one of the MLC’s statutory responsibilities under the MMA,” says Kris Ahrend, CEO of the MLC. “The MLC has tapped music industry audit veteran, Jane Bushmaker, a member of the MLC’s Analytics & Automation team, to oversee DSP audits, which will be conducted by experienced outside audit firms.”
“The MLC’s audit right is a first in the 115-year history of the U.S. compulsory mechanical license and provides enhanced protection for songwriters and music publishers,” adds Alisa Coleman, chair of the board of directors at the MLC. “The audit notices filed by the MLC mark the beginning of its fulfillment of this important function.”
See below for a full list of companies the MLC intends to audit:
Amazon Media Venture LLC (AMP)
Amazon.com Services LLC (Amazon Music)
Anghami FZ LLC (Anghami)
Appcompanist, LLC (Appcompanist)
Apple Inc. (Apple Music)
Artist Technology Group DBA PANTHR Music (PANTHR Music)
Audiomack Inc. (Audiomack)
Avail LLC (The Cover Foundry)
Beatport LLC (Beatport)
Bill Graham Archives, LLC (Wolfgang’s Music)
Boxine GmbH (Tonies)
Choral Tracks LLC (Choral Tracks)
Classical Archives, LLC (Classical Archives)
Da Capo Music, LLC (Yes! Fitness Music)
Deezer S.A. (Deezer)
Fan Label, LLC (FanLabel)
Global Tel*Link Corporation (GTL)
Google, LLC (Google Play Music/YouTube)
GrooveFox Inc. (GrooveFox)
IDAGIO GmbH (Idagio)
iHeartMedia + Entertainment, Inc. (iHeart Radio)
JPay LLC (JPay)
M&M Media, Inc. (Trebel)
Midwest Tape, LLC (hoopla)
Mixcloud Ltd (Mixcloud)
MONKINGME S.L. (MonkingMe)
Music Choice (Music Choice)
Napster Group PLC (Napster)
Naxos Digital Services US Inc. (NAXOS)
Nugs.net Enterprises, Inc. (Nugs.net)
Pacemaker Music AB (Pacemaker)
Pandora Media, LLC (Pandora)
PianoTrax LLC (PianoTrax)
Power Music, Inc. (Power Music)
PRIMEPHONIC B.V. (Primephonic)
Recisio SAS (Karaoke Version)
Saavn Media Limited (Jiosaavn)
Securus Technologies, LLC (Securus)
Slacker, Inc. (Slacker/LiveXLive)
Smithsonian Institution (Smithsonian Folkways Recordings)
Sonos, Inc. (Sonos)
SoundCloud Operations Inc. (Soundcloud)
Spotify USA Inc. (Spotify)
TIDAL Music AS (Tidal)
Transsnet Music Limited (Boomplay)
TRIBL, LLC (Tribl)
Ultimate Guitar USA LLC (GuitarBackingTrack.com)
Weav Music, Inc. (Weav Run)
XANDRIE USA (QOBUZ)
Yoto Ltd (Yoto)
Former Games of Thrones actress Sophie Turner dropped her “wrongful retention” lawsuit against ex-husband Joe Jonas over the custody of their two daughters after the former couple signed a co-parenting consent plan approved by a U.K. judge last week. According to The New York Times, a judge in the U.S. District Court for the Southern […]
Lana Del Rey has signed a publishing agreement with Universal Music Publishing Group, sources tell Billboard. The singer-songwriter was previously affiliated with Sony Music Publishing. Explore Explore See latest videos, charts and news See latest videos, charts and news News of the UMPG deal arrives just a day after Del Rey was announced as one […]
Condé Nast announced on Wednesday (Jan. 17) that it is laying off staff at the music publication Pitchfork and that the website will be absorbed by another Condé title, the men’s magazine GQ.
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Anna Wintour, Condé Nast’s chief content officer, said in an email to staff that “we are evolving our Pitchfork team structure by bringing the team into the GQ organization. This decision was made after a careful evaluation of Pitchfork‘s performance and what we believe is the best path forward for the brand so that our coverage of music can continue to thrive with the company.”
According to the memo, Puja Patel will no longer be editor in chief after the changes; she’s been in the role since 2018.
“With these organizational changes, some of our Pitchfork colleagues will be leaving the company today,” Wintour added. “I want to thank Puja for her leadership of the title over the last five years.”
Wintour’s email to staff — first reported by Semafor — did not say how many employees were terminated. When asked about the extent of the layoffs, a Condé Nast representative pointed Billboard back to Wintour’s memo.
“After nearly 8 [years], mass layoffs got me,” longtime editor Jill Mapes tweeted. “Glad we could spend that time trying to make it a less dude-ish place just for GQ to end up at the helm.”
“It’s official: I was laid off from Pitchfork today, along with what appears to be half the staff,” Matthew Ismael Ruiz wrote. “While on parental leave.”
Like the tech and music industries, media has been ravaged by layoffs over the past 15 months. Axios reported last June that there were more than 17,000 cuts across media in the first five months of 2023, “the highest year-to-date [total] on record.”
Roger Lynch, the CEO of Condé Nast, told staff in November that the company planned to cut 270 employees, or around 5% of staff. “We are prioritizing cost reductions through real estate/office space savings (for example, we are already in the process of bringing our teams in the UK together in one space), closing open roles and re-phasing certain long-term projects across the business,” he wrote.
“However, these efforts alone won’t be enough to ensure we can continue to make the investments needed to grow our business profitably,” Lynch added. “We’ve also had to make the difficult decision to implement reductions among our dedicated teams.”
Pitchfork was founded in 1996 and grew to become one of the leading voice in indie music coverage. Condé Nast acquired it in 2015.
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: An ugly new legal battle erupts within the Prince estate; Madison Square Garden CEO James Dolan is sued for sexual assault; a judge issues a ruling on the ongoing battle between members of Mötley Crüe; and much more.
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THE BIG STORY: Civil War in The Prince Estate
After Prince died without a will in 2016, it took more than six years of legal wrangling to settle his estate, as heirs, advisors, a court-appointed bank and Primary Wave all battled before a Minnesota probate judge over how exactly the star’s assets should be divided.
When the dust finally settled in 2022 — with tax issues resolved and the $146 million estate split evenly into two LLCs — it seemed that the case was closed. Primary Wave (which bought out three of the heirs) would control one-half of the estate, while the remaining heirs and a pair of advisors would control the other half. Each side vowed to bring Prince’s music to a new generation of music fans.
But less than two years later, the Prince estate is suddenly back in court — this time, over allegations of an attempted coup within one of the ownership groups, of severe dysfunction at Paisley Park and of attempts by two heirs to unilaterally sell more shares to Primary Wave. For more, go read our full story here.
Other top stories this week…
JAMES DOLAN UNDER FIRE – The Madison Square Garden executive was hit with a sexual assault lawsuit claiming he pressured a masseuse into unwanted sex while his band was touring with the Eagles — and that he later facilitated an incident in which she was also assaulted by Harvey Weinstein. The lawsuit also named Irving Azoff’s The Azoff Company, claiming it had “benefited from facilitating Dolan’s behavior.”
CRÜE’S COURT CLASH – Mötley Crüe co-founder Mick Mars won a court order against his former bandmates, requiring them to repay some of his legal bills after a judge said they refused to turn over key financial records and other information. The decision was a win for Mars, but the real battle — a private arbitration case over whether the band acted illegally when they tried to kick him out of the band — remains ahead.
DIDDY BOOZE SETTLEMENT – Sean “Diddy” Combs and alcohol giant Diageo reached a settlement to resolve a year-long lawsuit over their soured partnership for DeLeón tequila. The deal, which will end a bitter legal battle that saw Combs accuse the liquor company of racism, came just months after he was hit with multiple sexual assault lawsuits.
G HERBO SENTENCED – A federal judge sentenced the Chicago rapper to three years of probation after he pleaded guilty to participating in a scam involving stolen credit card information — a fraud that prosecutors say netted the Chicago rapper almost $140,000 in private jet flights, vacation lodgings and luxury car rentals.
ALLEGED TUPAC KILLER GETS BAIL – A judge set bail at $750,000 for Duane “Keffe D” Davis, the former Los Angeles-area gang leader charged with orchestrating the killing of hip-hop legend Tupac Shakur in 1996. The judge ruled that Davis, who is allegedly in poor health after battling cancer, can serve house arrest with electronic monitoring ahead of his trial in June.
AI LEGISLATION IN WASHINGTON – A bipartisan group of lawmakers in the U.S. House of Representatives introduced a bill called No Artificial Intelligence Fake Replicas And Unauthorized Duplications Act, or No AI FRAUD Act, legislation that would aim to regulate the use of artificial intelligence for cloning voices and other forms of likeness. The same day, lawmakers in Tennessee unveiled similar legislation called the Ensuring Likeness Voice and Image Security Act, or ELVIS Act, which would beef up existing state-level protections for such likeness rights.
Marc Anthony and Sam Nazarian, founder/CEO of lifestyle and hospitality company SBE Entertainment Group, announced a “landmark alliance” on Wednesday (Jan. 17) that marks the first hospitality venture for the salsa superstar and his entertainment company, Magnus.
Through the deal, Anthony and Magnus are now equity partners in all of SBE’s existing properties, which include culinary brands, restaurants, lounges and nightclubs. According to a press release, SBE’s new multi-vertical business strategy will focus on growing the brand among Latin American audiences.
Additionally, new properties will also be launched in the hospitality space and additional brands will be created together. The alliance also opens new opportunities for Magnus’ roster (record label, management and booking), which includes Luis Figueroa, Mau y Ricky, Fonseca and Gente de Zona.
Aside from his decades-long music career, Anthony is a multi-hyphenate businessman who launched Magnus in 2015 to represent both Latin artists and athletes in the United States. In 2009, he became a minority owner of the Miami Dolphins, and last December, launched the electric powerboating team, E1 Team Miami. In 2012, his work in philanthropy led him to launch the Maestro Cares Foundation, which has built orphanages in various countries in Latin America and the Caribbean.
“It would be an understatement to say that this announcement today is one of the greatest highlights of all of the endeavors I’ve taken on in my life,” Anthony said in a statement. “To have the honor to join forces with my great friend Sam and SBE, is something we have spoken about throughout the years and the time has finally come. My team, alongside the unparalleled expertise of SBE, is poised to contribute significantly to the success of this new journey. With a shared commitment to excellence and a track record of unparalleled vision and execution, we are excited to bring our best-in-class capabilities to elevate SBE’s projects to new heights. Together, we look forward to unveiling a series of remarkable initiatives that showcase the synergy and excellence synonymous with the SBE family.”
“It’s an honor to join forces with long-time friend and international superstar Marc Anthony. I have a tremendous amount of admiration for the career that he has built, and, more importantly, his entrepreneurial instinct,” added Nazarian, who founded SBE in 2002. “It’s been an aspiration of ours to come together to build something special, and I am excited to share all the amazing things we are working on with him as our strategic partner. My sbe team is honored to collaborate with the best-in-class entrepreneurial team Marc has built at Magnus, led by a dynamic team, CEO Michel Vega and COO Felipe Pimiento, to connect with and deliver experiences to an audience that Marc has so carefully cultivated throughout his career. This is just the beginning, and I can’t wait to see what we build together.”
Mötley Crüe co-founder Mick Mars has won a court order against his former bandmates, but the legal battle over his exit from the band is far from over.
In a decision Tuesday (Jan. 16), a Los Angeles judge ruled that the band should have handed over financial records, operating agreements and other key information earlier — and that Mars was therefore entitled to be repaid the legal bills he spent suing to win access to those files.
“The requests were not burdensome. Yet, Mars was compelled to file suit, and it appears plain that production would not have occurred without it. Mars is entitled to attorney fees,” Los Angeles Superior Court Judge James C. Chalfant wrote in the ruling, which was obtained by Billboard.
Since the band ultimately ended up handing over those files in December, the judge ruled Tuesday that Mars’ court case is now legally moot. But he ruled that the band’s delay had been improper, meaning they owed Mars reimbursement: “These documents should have been produced without the need for prodding by Mars.” The total amount of legal fees will be decided in future proceedings.
The decision is a win for Mars, who claimed in court filings that Mötley Crüe was trying to make sure he “spends as much money as possible” so that he would be “starved out.” But it does not mean he has won his case against the band. The real battle, over whether his bandmates breached their contract by kicking him out, is going to take place in a private arbitration case that remains pending.
The civil war within Crüe first burst into the open in April, when Mars filed his lawsuit claiming he had been unceremoniously terminated by his “brothers of 41 years.” Though technically only seeking access to the band’s records, the lawsuit disclosed for the first time that the two sides were already locked in arbitration proceedings over his exit from the band.
In the complaint, Mars argued the band had moved to illegally deprive him of his 25% ownership stake in the group, a move he claimed came after he made the “tragic announcement” that he could no longer tour due to an arthritic condition called ankylosing spondylitis.
The band quickly responded, saying it “did not owe Mick anything” under existing band agreements and had done nothing wrong. They cited sworn declarations in which numerous touring staffers stated that Mars had repeatedly made serious errors on stage before he exited the band, including suddenly “playing a different song in a middle of another one” and “forgetting chords and songs.”
With that core dispute still unresolved and set to be decided by an arbitrator later this year, both sides portrayed Tuesday’s court ruling as a victory.
The band’s lawyer, Sasha Frid, pointed to the fact the judge declared Mars’ case moot: “The case is over. That’s the key takeaway. By denying the petition as moot and ending the case, the court found that the band turned over all the documents to Mars and there is nothing more to do. The band went above and beyond its obligations by providing much more documents than the statute required.”
Mars’ lawyer Ed McPherson, meanwhile, sharply rejected that interpretation: “If it makes the band feel better to say that they won, that is fine — but they apparently haven’t read the judge’s decision. When the judge says that they failed to produce documents ‘without justification,’ and he orders them to pay Mick’s attorneys’ fees, that does not feel like a win for the band to me!”
A little over a month after Kendrick Lamar headlined an event for Global Citizen’s Move Afrika campaign, the initiative is expanding to West Africa in 2024, with Ghana joining Rwanda as a host nation for a 2024 concert event.
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The announcement arrived on Wednesday (Jan. 17) at the World Economic Forum in Switzerland from Global Citizen; pgLang, the creative imprint co-founded by Lamar and Dave Free; Nana Akufo-Addo, President of the Republic of Ghana; and Paul Kagame, President of the Republic of Rwanda.
The Move Afrika: Ghana initiative looks to drive economic investment in the Ghanian entertainment industry, and is part of the wider Move Afrika campaign, which aims to establish an international music touring circuit across Africa. Musical talent at the upcoming 2024 event in Accra, Ghana, has not been announced, but Global Citizen previously brought Usher, SZA, Stormzy and TEMS to a 2022 concert in Accra as part of a different campaign.
“I am excited to announce that later this year, Global Citizen will return to Ghana with Move Afrika: Ghana. Global Citizen is known for leveraging live music events to engage youth while creating social and economic impact,” said President Akufo-Addo. “We are delighted to join Rwanda in becoming the next destination for Global Citizen’s multi-year, multi-market pan-African tour and expect continued impact in the years ahead. Today, we celebrate this milestone for Ghana. We look forward to future announcements on this growing cohort of Move Afrika destinations.”
“We visited Accra for the first time in 2022 and really connected with the people and the culture. Accra will always be a special place for us and we are excited to work with Move Afrika and expand our efforts to Ghana,” pgLang said in a joint statement.
“Congratulations to my brother and friend, President Nana Akufo-Addo, for your partnership with Move Afrika,” offered President Kagame. “Last month, Rwanda was privileged to host the inaugural Move Afrika concert, in partnership with Global Citizen. Without exaggeration, Kendrick Lamar moved the whole city of Kigali with his performance. We are even happier that he took the time to engage with our local artists. Africa has the talent. More often than not, what they lack is mentorship and support. Global Citizen’s commitment to develop the workforce needed for professional concert tours will leave an important economic legacy for our region.”
“We are honored to bring Move Afrika to Ghana. Our partnership with the Ghanaian and Rwandan governments will showcase the best of African creative talent to the world, while generating economic investment into the local creative economy, which will have a lasting impact across the continent for years to come,” said Kweku Mandela, Global Citizen’s chief vision officer, in a statement.
Billboard and Billboard Español announce a groundbreaking tequila partnership with Tres Generaciones® as the official tequila partner for 2024. The collaboration kicks off at Billboard’s Power 100 Event with an intimate dinner in Los Angeles, featuring music industry leaders. Throughout the year, the partnership curates unique music experiences, interactive fan engagement, and content across major U.S. cities.
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Mike Van, president of Billboard, expresses excitement about the partnership, aiming to infuse culture, music, and premium tequila into events for fans and artists. The collaboration honors success stories and celebrates resilience, with Tres Generaciones® tequila playing a central role at iconic Billboard events like R&B/Hip-Hop Power Players and Latin Music Week.
To raise a toast to the power of music and pay homage to the songs that inspire us, Tres Generaciones® and Billboard will present “Get Up Anthems.” These hand selected playlists celebrate the songs that uplift each city and showcase the next generation of talented artists. The first “Get Up Anthem” will drop in Houston this spring, followed by Atlanta, Chicago, New York, Miami, and Los Angeles.
Beyond the playlists, each city will feature a writers-room-style content series, ‘The Debate,’ where artists, city experts and cultural tastemakers from these hometowns discuss the significance of the songs featured – paired with Tres Generaciones® tequila.
Chad Goven, managing director of tequila at Beam Suntory, expresses pride in joining forces with Billboard, emphasizing shared values of breaking boundaries and innovation. Tres Generaciones®, with 150 years of distilling excellence, represents determination and creativity. The incredibly smooth, triple distilled, agave-forward tequila is the spirit of choice for pioneers who redefine success with unrelenting passion and purpose.
Enjoy Responsibly. Tres Generaciones® Tequila, 40% Alc/Vol. © 2024 Sauza Tequila Import Company, Chicago, IL.
Alvaro Rizo has been named Gaira Música Local’s new MD, the company tells Billboard. Rizo will be based in the record label’s headquarters in Bogotá, Colombia. The label, which was founded in 1993 by Carlos Vives, is rooted in highlighting Colombia’s musical heritage with a roster that includes artists such as Gusi, Estereo Beat and […]