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Music credits database Jaxsta is still Jaxsta, but the parent company housing it — along with social networking platform Vampr and online record store Vinyl.com — is now called Vinyl Group Ltd. The fine-print flip was announced on Tuesday (Dec. 5) following approval from shareholders at the publicly-listed company’s general meeting last month. “It’s a […]
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: A judge issues a ruling in the Hall & Oates lawsuit after the dispute turns public and personal, Young Thug’s RICO trial gets underway in Atlanta with opening statements and witness testimony, Kelly Clarkson wins a California labor law ruling against her ex-husband, and much more.
THE BIG STORY: Hall v. Oates Goes Public
The mysterious legal battle among Hall & Oates got a lot clearer last week – with detailed filings from each artist, a hearing in open court, and a judge’s ruling on how the case will proceed.
To catch you up: After a decades-long, highly-lucrative musical partnership, Daryl Hall sued John Oates last month in Nashville court. The case was initially filed under seal, leading to days of speculation about why the beloved duo had become a house divided. Eventually, unsealed documents showed that Hall had sued Oates to block him from selling part of their joint venture to Primary Wave.
Last Wednesday, the case burst fully into the open. First, Hall filed court papers accusing partner John Oates of leaving him “blindsided” by secretly arranging the Primary Wave deal – an act he called the “ultimate partnership betrayal.” Oates responded hours later, saying he was “tremendously disappointed” that Hall had chosen to make “inflammatory, outlandish, and inaccurate statements about me.”
The filings were packed with new details – not just about the exact contours of the legal dispute, but also about the duo’s broader “divorce,” about Hall’s problems with Primary Wave in particular, and about each man’s personal feelings toward his former partner. Go read our full story here.
A day later, attorneys for the pair headed to court for their first showdown. Hall was repped by Christine Lepera of Mitchell Silberberg & Knupp, who urged a judge to extend a restraining order preventing Oates from completing the Primary Wave sale until an arbitrator can hear Hall’s objections. Oates was repped by Derek Crownover from Loeb & Loeb LLP, who argued that no such order was necessary.
On Thursday afternoon, Chancellor Russell Perkins agreed to extend the restraining order, blocking Oates from selling to Primary Wave until February or until the arbitrator tackles the case – whichever comes first. Go read our full story explaining why.
The case will now head to private arbitration, for which an arbitrator has already been selected but an initial hearing has not yet been scheduled. Stay tuned…
THE OTHER BIG STORY: YSL RICO Trial Begins
More than 18 months after chart-topping rapper Young Thug was indicted on accusations that he ran a violent Atlanta street gang, he finally headed to trial last week.
In their opening statements, Atlanta prosecutors claimed that Thug was “King Slime,” a powerful boss operating his “Young Slime Life” gang like a “pack” of wolves – even reading a passage from The Jungle Book for jurors. And they defended their controversial use of his music to help prove it.
“We didn’t chase any lyrics to solve any murders,” Adriane Love told jurors. Instead, she said prosecutors in this case “chased the murders and found the lyrics” that pointed to true, specific events.
A day later, Thug’s lawyer responded by telling jurors that his client had been “born into a society filled with despair” and had merely rapped about violent crime because “these are the stories he knew” — and that prosecutors had cherry-picked lyrics that matched the crimes they hoped to pin against him.
“This is the environment he grew up in. These are the people he knew, these are the stories he knew. These are the words he rhymed,” Brian Steel told the jury. “This is art. This is freedom of speech.”
After opening statements concluded, prosecutors began presenting witnesses – a process that is expected to last months.
Other top stories this week…
SINCE U BEEN GONE – Kelly Clarkson won a legal ruling in California that said her ex-husband Brandon Blackstock owes her more than $2.6 million in commissions she paid to him while he serving as her manager. The decision, issued by California’s labor commissioner, said Blackstock had “unlawfully procured” a number of business deals for Clarkson, including her lucrative role as a judge on The Voice, that should have been handled by her talent agents at Creative Artists Agency (CAA).
‘FICTITIOUS’ CONCERTS? – Rapper Polo G sued a European tour booking firm over canceled plans for a string of concerts, claiming that the company continued to advertise the shows anyway — actions he calls “a shocking and outrageous fraud.”
YOUTUBER SLAPPS BACK – YouTube personality Spencer Cornelia — known for his investigative video series on the music industry — prevailed in a defamation lawsuit filed by wealth coach Derek Moneyberg. The case, which concerned YouTube interviews in which Moneyberg was termed a “Charlatan,” was tossed out under California’s anti-SLAPP law – a statute aimed to quash lawsuits that threaten free speech.
TIKTOK BAN BLOCKED – Montana’s first-in-the-nation law banning the video-sharing app TikTok in the state was blocked by a federal judge who ruled that the statute likely violates the First Amendment. The judge ruled that the law “oversteps state power and infringes on the Constitutional right of users and businesses.”
ARETHA ESTATE BATTLE – A judge overseeing the estate of Aretha Franklin awarded real estate to the late star’s sons, citing a handwritten will from 2014 that was found between couch cushions. The ruling came months after a Detroit-area jury said the document was a valid will under Michigan law, despite scribbles and many hard-to-read passages. Franklin had signed it and put a smiley face in the letter “A.”
HarborView Equity Partners, a rising player in music acquisitions that has built a hip-hop and R&B-heavy song catalog, announced Tuesday (Dec. 4) that it amended its senior secured credit facility to increase its borrowing capacity from $200 million to $300 million. The additional $100 million of funding will be used to continue to acquire music royalty catalogs as well as for general corporate purposes.
The credit facility is led by Fifth Third Bank and includes California Bank & Trust, MUFG Bank, Regions Bank and BankUnited. For the amended facility, three new lenders were added to the syndicate: Bank of America, Barclays and First Bank & Trust Company.
“HarbourView remains committed to providing the best execution for our growing LP base, against a relatively challenging market environment. We are thankful to both our new and existing financing partners for their commitment to HarbourView’s success,” said HarbourView head of capital markets Carlos Cruz in a statement.
“As capital conditions evolve, we are grateful for the continued support of our banking partners who have helped support HarbourView’s tremendous growth since inception,” added HarbourView CEO/founder Sherrese Clarke Soares.
Clarke Soares, a former managing director at Morgan Stanley who later founded Tempo Music and won the UBS & Billboard Trailblazer Award in February, has been attracted to R&B, hip-hop and Latin genres in addition to the classic pop and rock catalogs pursued by most investors.
Founded in 2021, the Newark, N.J.-based Harbourview is behind such recent acquisitions as the royalty income of select Nelly recordings, select recorded music and publishing assets of Wiz Khalifa and select publishing assets of Kane Brown. To date, HarbourView has acquired 45 music catalogs spanning about 26,000 songs. HarbourView owns the publishing catalog of “Despacito” co-writer Luis Fonsi and the publishing catalog of Dre & Vidal, the songwriting and production duo behind hits from Alicia Keys, Jill Scott and Mary J. Blige.
“We’re looking at the intersection of historical performance, growth trends, returns — and expectation in terms of price,” Clarke Soares told Billboard in 2022. “Where all that intersects is where we have found a lot of great opportunities.”
Audio Up Media, best known for its award-winning podcasts including Make It Up as We Go and Halloween in Hell, has launched Audio Chateau Records and formed a partnership with Virgin Music Group.
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“So much of our audio entertainment incorporates original music, and we are constantly discovering and working with new talent that deserves to be heard by a wider audience,” said Audio Up CEO Jared Gutstadt in a statement. “ Our new partnership with [Virgin Music Group president] Jacqueline Saturn and [head of global music strategy] Matt Sawin and the great team at Virgin provides us with an additional and powerful platform to launch new talent into the stratosphere.”
The first release, coming next month, will be from Randy Savvy, who is co-founder of the Southern California equestrian group, Compton Cowboys. Savvy’s album, which will be executive produced and co-written by Gutstadt, will combine rap and country music.
Also expected in the first quarter of 2024 will be the debut album from Maejor Audio Sunshine, a group composed of producer/songwriter Maejor, who hosts Audio Up’s music and wellness Maejor Frequency podcast (which was named Adweek’s 2022 podcast of the year); Bipolar Sunshine, who is best known for “Middle,” his collaboration with DJ Snake; and Gutstadt, who as a producer/songwriter, has worked with Jelly Roll and Machine Gun Kelly, among others.
Coming in summer 2024 will be a full-length album from Uncle Drank, a character from Audio Up’s The Ballad of Uncle Drank, portrayed by Will Sasso. The musical podcast’s voice cast also includes Luke Wilson, Brian Kelley, Kinky Friedman and Billy Zane.
Jared Gutstadt
Courtesy Photo
“It’s the perfect time for Jared and his team to expand their platform for creating and releasing music, and all of us at Virgin are thrilled to be the distribution partner for Audio Chateau Records,” said Saturn in a statement. “The company’s initial slate of releases is reflective of Jared’s ability to sign and develop artists and projects that are unique to the marketplace, and we look forward to having a lot of fun and success together in the coming years.”
Backing for the label includes investments from Audio Chateau board member/entrepreneur Jonathan Schulman and producer Gillian Hormel, heiress to the Hormel Foods brand, who recently launched Partners in Kind, a $50 million equity fund that will develop film and television projects that promote kindness.
Audio Up will continue to produce podcasts and other entertainment content, including former Donald Trump attorney Michael Cohen’s podcast, Mea Culpa, and comedy podcast Bedtime Stories of the Ingleside Inn. In 2021, Audio Up released Strawberry Spring, the first podcast adaptation of a Stephen King short story.
Alec Benjamin (“Let Me Down Slowly”) signed with Range Media Partners‘ music division. The singer-songwriter is ramping up for the release of his third studio album, which is slated for release on Elektra next year. “Coal” singer-songwriter Dylan Gossett signed with UTA for global representation in all areas. Gossett also recently signed to Big Loud […]
LONDON — Representatives of the creative industries are urging legislators not to water down forthcoming regulations governing the use of artificial intelligence, including laws around the use of copyrighted music, amid fierce lobbying from big tech companies.
On Wednesday (Dec. 6), policy makers from the European Union Parliament, Council and European Commission will meet in Brussels to negotiate the final text of the EU’s Artificial Intelligence Act – the world’s first comprehensive set of laws regulating the use of AI.
The current version of the AI Act, which was provisionally approved by Members of European Parliament (MEPs) in a vote in June, contains several measures that will help determine what tech companies can and cannot do with copyright protected music works. Among them is the legal requirement that companies using generative AI models like OpenAI’s ChatGPT or Anthropic’s Claude 2 (classified by the EU as “general purpose AI systems”) provide summaries of any copyrighted works, including music, that they use to train their systems.
The draft legislation will also force developers to clearly identify content that is created by AI, as opposed to human works. In addition, tech companies will have to ensure that their systems are designed in such a way that prevents them from generating illegal content.
While these transparency provisions have been openly welcomed by music executives, behind the scenes technology companies have been actively lobbying policymakers to try and weaken the regulations, arguing that such obligations could put European AI developers at a competitive advantage.
“We believe this additional legal complexity is out of place in the AI Act, which is primarily focused on health, safety, and fundamental rights,” said a coalition of tech organizations and trade groups, including the Computer and Communications Industry Association, which counts Alphabet, Apple, Amazon and Meta among its members, in a joint statement dated Nov. 27.
In the statement, the tech representatives said they were concerned “about the direction of the current proposals to regulate” generative AI systems and said the EU’s proposals “do not take into account the complexity of the AI value chain.”
European lawmakers are also in disagreement over how to govern the nascent technology with EU member states France, Germany and Italy understood to be in favor of light touch regulation for developers of generative AI, according to sources close to the negotiations.
In response, music executives are making a final pitch to legislators to ensure that AI companies respect copyright laws and strengthen existing protections against the unlawful use of music in training AI systems.
Helen Smith, the executive chair of IMPALA. /
Lea Fery
Helen Smith, executive chair of European independent labels group IMPALA, tells Billboard that the inclusion of “meaningful transparency and record keeping obligations” in the final legislation is a “must for creators and rightsholders” if they are to be able to effectively engage in licensing negotiations.
In a letter sent to EU ambassadors last week, Björn Ulvaeus, founder member of ABBA and president of CISAC, the international trade organization for copyright collecting societies, warned policymakers that “without the right provisions requiring transparency, the rights of the creator to authorise and get paid for use of their works will be undermined and impossible to implement.”
The European Composer and Songwriter Alliance (ECSA), International Federation of Musicians (FIM) and International Artist Organisation (IAO) are also calling for guarantees that the rights of their members are respected.
If legislators fail to reach a compromise agreement at Wednesday’s fifth and planned-to-be-final negotiating session on the AI Act, there are a number of possible outcomes, including further ‘trologue’ talks the following week. If a deal doesn’t happen this month, however, there is the very real risk that the AI Act won’t be passed before the European parliamentary elections take place in June.
If that happens, a new parliament could theoretically scrap the bill altogether, although executives closely monitoring events in Brussels, the de facto capital of the European Union, say that is unlikely to happen and that there is strong political will from all sides to find a resolution before the end of the year when the current Spain-led presidency of the EU Council ends.
Because the AI Act is a regulation and not a directive — such as the equally divisive and just-as-fiercely-lobbied 2019 EU Copyright Directive — it would pass directly into law in all 27 EU member states, although only once it has been fully approved by the different branches of the European government via a final vote and officially entered into force (the exact timeframe of which could be determined in negotiations, but could take up to three years).
In that instance, the act’s regulations will apply to any company that operates in the European Union, regardless of where they are based. Just as significant, if passed, the act will provide a world-first legislative model to other governments and international jurisdictions looking to draft their own laws on the use of artificial intelligence.
“It is important to get this right,” says IMPALA’s Smith, “and seize the opportunity to set a proper framework around these [generative AI] models.”
In April, Grimes encouraged artists to make music using her voice — as replicated by artificial intelligence-powered technology. Even as she embraced a high-tech future, however, she noted that there were some old-fashioned legal limitations. “I don’t own the rights to the vocals from my old albums,” she wrote on X. “If you make remixes, they may get taken down.”
Artificial intelligence has dominated the hype cycle in 2023. But most signed artists who are enthusiastic about testing out this technology will have to move cautiously, wary of the fact that preexisting contracts may assert some level of control over how they can use their voice. “In general, in a major label deal, they’re the exclusive label for name, likeness and voice under the term,” says one veteran manager who spoke on the condition of anonymity. “Labels might be mad if artists went around them and did a deal themselves. They might go, ‘Hey, wait a minute, we have the rights to this.’”
On the flip side, labels probably can’t (or won’t) move unilaterally either. “In our agreements, in a handful of territories, we’ve been getting exclusive name, image, likeness and voice rights in connection with recordings for years,” says one major label source. That said, “as a practical matter, we wouldn’t license an artist’s voice for a voice model or for any project without the artists being on board with it. It would be bad business for us.”
For the moment, both sides are inching forward, trying to figure out how to “interpret new technology with arcane laws,” as Arron Saxe, who manages several artists’ estates, puts it. “It’s an odd time because the government hasn’t stepped in and put down real guidelines around AI,” adds Dan Smith, general manager of the dance label Armada Music.
That means guidelines must be drawn via pre-existing contracts, most of which were not written with AI in mind, and often vary from one artist to the next. Take a recent artist deal sent out by one major label and reviewed by Billboard: Under the terms, the label has the “exclusive right to record Artist Performances” with “performance” broadly defined to include “singing, speaking… or such performance itself, as the context requires.” The word “recording” is similarly roomy: “any recording of sound…by any method and on any substance or material, whether now or hereafter known.”
Someone in this deal probably couldn’t easily go rogue and build a voice-cloning model on newly recorded material without permission. Even to participate in YouTube’s recently announced AI voice generation experiment, some artists needed to get permission in form of a “label waiver,” according to Audrey Benoualid, a partner at Myman Greenspan Fox Rosenberg Mobasser Younger & Light. (In an interview about YouTube’s new feature, Demis Hassabis, CEO of Google Deepmind, said only that it has “been complicated” to negotiate deals with various music rights holders.) Even after an artist’s deal ends, if their recordings remain with a label, they would have to be careful to only train voice-cloning tech with material that isn’t owned exclusively by their former record company.
It’s not just artists that are interested in AI opportunities, though. Record labels stand to gain from developing licensing deals with AI companies for their entire catalogs, which could in turn bring greater opportunities for artists who want to participate. At the Made on YouTube event in September, Warner Music Group CEO Robert Kyncl said it’s the label’s “job” to make sure that artists who lean into AI “benefit.” At the same time, he added, “It’s also our job together to make sure that artists who don’t want to lean in are protected.”
In terms of protections, major label deals typically come with a list of approval rights: Artists will ask that they get the chance to sign off on any sample of their recordings or the use of one of their tracks in a movie trailer. “We believe that any AI function is just another use of the talents’ intellectual property that would take some approval by the creator,” explains Leron Rogers, a partner at Fox Rothschild.
In many states, artists also have protection under the “right of publicity,” which says that people have control over the way others can exploit their individual identities. “Under that umbrella is where things like the right to your voice, your face, your likeness are protected and can’t be mimicked because it’s unfair competition,” says Lulu Pantin, founder of Loop Legal. “But because those laws are not federal, they’re inconsistent, and every state’s laws are slightly different” — not all states specifically call out voices, for example — “[so] there’s concern that that’s not going to provide robust protection given how ubiquitous AI has become already.” (A lack of federal law also limits the government’s ability to push for enforcement abroad.)
To that end, a bipartisan group of senators recently introduced a draft proposal of the NO FAKES act (“Nurture Originals, Foster Art, and Keep Entertainment Safe”), which would enshrine a federal right for artists, actors and others to take legal action against anyone who creates unauthorized “digital replicas” of their image, voice, or likeness. “Artists would now gain leverage they didn’t have before,” says Mike Pelczynski, who serves on the advisory board of the company voice-swap.ai.
While the entertainment industry tracks NO FAKES’ progress, Smith from Armada believes “we will probably start to see more artist agreements that are addressing the use of your voice.” Sure enough, Benoualid says that in new label deals for her clients, she now asks for approval over any use of an artist’s name, likeness, or voice in connection with AI technology. “Express written approval should be required prior to a company reproducing vocals, recordings, or compositions for the purpose of training AI platforms,” agrees Matthew Gorman, a lawyer at Cox & Palmer.
Pantin has been keeping an eye on the way other creative fields are handling this fast-evolving tech to see if there are lessons that can be imported into music. “One thing that I’ve been trying to do and I’ve had success in some instances with is asking the rights holders — the publishers, the labels — for consent rights from the individual artists or songwriter before their work is used to train generative AI,” she says. “On the book publishing side, the Authors Guild has put forth language they recommended are included in all publishing agreements, and so I’m drawing from that and extending that to songwriting.”
All these discussions are new, and the long-term impact of AI-driven technology on the creative fields remains unclear. Daouda Leonard, who manages Grimes, is adamant that in the music industry’s near future, “the licensing of voice is going to become a valuable asset.” Other are less sure — “nobody really knows how important this will be,” the major label source says.
Perhaps Grimes put it best on X: “We expect a certain amount of chaos.”
Paul Hitchman has been promoted to COO at AWAL, the company announced Tuesday (Dec. 5). Hitchman is based in AWAL’s London office, where he oversees the independent distribution and label division’s U.K. team and international offices along with its global operations. He will continue reporting to CEO Lonny Olinick, with whom he works closely, along […]
Spotify shares jumped 7.5% on Monday (Dec. 4) following news the company will lay off 17% of its global workforce. CEO Daniel Ek called the layoffs a “crucial step” in a wider effort to be “relentlessly resourceful.” The layoffs amount to roughly 1,500 staffers based on the company’s recent disclosure of having 9,241 full-time employees. […]
TikTok announced that it will bring its in-app ticketing feature, a collaboration with Ticketmaster, to an additional 20 countries on Monday (Dec. 4).
The feature allows artists to put Ticketmaster event links in the clips they post on TikTok, making it easy for their followers to click and buy tickets in the app. TikTok started testing the feature in the U.S. in August 2022.
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The two companies didn’t share any information about the results of the test, though they said Niall Horan, The Kooks, Burna Boy, and Shania Twain have all tried it out. TikTok opened access to the feature this week to certified artists in the U.K., Ireland, Australia, Germany, France, Canada, Mexico, Austria, Belgium, Czech Republic, Denmark, Finland, Italy, Netherlands, New Zealand, Norway, Poland, Switzerland, Spain and Sweden.
In a statement, Michael Chua, Ticketmaster’s vp global business development and strategic partnerships, said the partnership will allow artists to “easily connect their content to event discovery and ticket purchase in-app making it easier than ever for fans around the world to experience their favorite artists live.”
“By enabling fans to buy tickets directly through TikTok, we’re giving artists the opportunity to reach ticket buyers in a whole new way,” added Michael Kümmerle, TikTok’s global music partnership development lead. “We hope to deliver further value to all artists throughout all stages of their careers and provide more opportunities for a growing fanbase.”
TikTok has been busy rolling out features lately. Last week, the platform added official artist labels (available once a user has released four songs) and a “new” tag that can be used to highlight an act’s latest release (14 days before the song comes out and for another 30 days after it drops). “These features can deepen engagement whilst creating unique opportunities for fans to connect with their favorite artists in meaningful ways, driving music discovery on the platform,” said Paul Hourican, TikTok’s global head of music partnerships and programming, in a statement.