Business
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Concord Music Publishing has signed Amaarae to a global publishing deal, in partnership with Immensum Music. This deal includes the Ghanian-American pop artist’s full catalog and all future works, including Fountain Baby, released earlier this year.
One Two Many (OTM) Music has signed Grammy-nominated producer Dot Da Genius to an exclusive global publishing deal, including both his back catalog and future works. This includes songs the producer has made with Steve Aoki, Don Toliver, Denzel Curry, JID, and Kid Cudi.
Warner Chappell Brazil has acquired a catalog from music publishing company Deck, which covers over 10,000 musical compositions by Pitty, Chico César, Falamansa and Sorriso Maroto, among other artists. The deal was first reported by POPline. According to the website’s report, the agreement between Warner and Deck — record label and publisher founded in 1998 — is one of the largest in Brazilian music.
Warner Chappell Music U.K. and Transgressive Publishing have renewed their joint venture partnership, which has been going for the last 17 years. The extension marks Warner Chappell’s longest-standing JV to date. Along with this news, Transgressive has also announced a new deal with the Foals for their catalog, side projects and future recordings.
Avex USA Publishing and The Revels Group’s Coup D’Etat Music have entered a joint venture to sign Victony to a global deal. A trusted collaborator of Rema, Burna Boy, Don Toliver and more and creator of viral hit “Soweto,” Victony is an essential part of the rising popularity of Afrobeats worldwide.
Peermusic has acquired Arctic Rights Management (ARM), the largest indie publisher in Norway. The deal will give peermusic the publishing rights to ARM’s 5,000+ recordings and compositions. This includes the publishing interest in songs like “Don’t Start Now” and “New Rules” by Dua Lipa and “365” by Zedd and Katy Perry.
Kobalt has signed U.K.-based songwriter and producer Toby Scott to a global publishing administration deal. Scott is an in-demand collaborator in the dance space and his discography includes songs with Galantis, David Guetta, Tiesto, Alok, Dom Dolla, Anyma, D.O.D, Jax Jones, Purple Disco Machine, Martin Solveig, Sophie and the Giants and Robin Schulz.
Warner Chappell Music and Tape Room Music has jointly signed country songwriter and producer Casey Brown to a global publishing deal. Over the course of his career, Brown has worked with Parmalee, Russell Dickerson, Dierks Bentley, Ashley McBryde, Keith Urban, Thomas Rhett, Tyler Hubbard, and Lauren Alaina.
Sentric Music Group has signed electronic musician and composer Amon Tobin to a worldwide publishing administration deal. To date, Tobin has released 17 studio albums, first under Ninja Tune and now under his own label Nomark, and his songs have appeared in films like The Italian Job, 21 and Rampart, Divine Intervention, Taxidermia, Splinter Cell, Infamous and more. As part of the deal, Sentric will represent Tobin’s catalog for synch opportunities.
Warner Chappell Music has signed Jenee Fleenor to a global publishing deal. The first woman to be nominated and win Musician of the Year at the 2019 CMA Awards, Fleenor is an in-demand fiddler, playing on top country songs like “I’ll Name the Dogs” by Blake Shelton, “Heartache Medication” by Jon Pardi, and “Til You Can’t” by Cody Johnson. She also releases music as an artist in her own right, beginning with 2019’s “Fiddle & Steel” and is part of a supergroup called the Wood Box Heroes.
Rogét Chahayed‘s TruSauce Publishing has signed rising producer Brandon Shoop to a worldwide publishing deal. Based in Los Angeles, Shoop’s credits include “Cybah” by Syd & Lucky Daye, “Moonlit Breakers” by Paul Dally & Dijon, “Lip Service” by Cautious Clay, “Sleeping With My Friends” by GAYLE, and Chloe George’s “Ghost Town.”
Investors in Hipgnosis Songs Fund on Thursday overwhelmingly demanded a new board make structural changes to the troubled music rights company in ways that don’t include selling off part of its 65,000-song catalog, which includes compositions by Neil Young, Shakira and the Red Hot Chili Peppers.
At the company’s annual meeting of shareholders in London, a majority of investors voted no on a resolution “to continue running the fund in its current form”–what’s known as a continuation vote — and they rejected a plan to sell a package of 29 song catalogs to Hipgnosis’ Blackstone-backed sister fund, according to the fund.
The ‘no’ vote signals unequivocal shareholder anger with the company founded by Merck Mercuriadis, and it kicks off a 6-month countdown for the board to come up with a plan “for the reconstruction, reorganisation, or winding-up of the company,” possibly “liquidating all or part of the company’s existing porfolio of investments,” according to the board’s statement.
“While shareholders have not supported our proposed transaction or the continuation vote, it is clear that they share our belief in the inherent quality and potential of these assets,” Sylvia Coleman, senior independent director of Hipgnosis Songs Fund said in an emailed statement. “Directors are now expediting the appointment of a new chair who will drive the strategic review we have already announced, with a clear focus on delivering improved shareholder value.”
Investors voted against the re-election of Hipgnosis Songs Fund board Chair Andrew Sutch at the meeting, speeding up the timetable for his departure. Sutch had already announced he would step down before the company’s next annual general meeting in 2024. On Wednesday, the day before the company’s annual meeting, fund directors Andrew Wilkinson and Paul Burger resigned, and last week, the board embarked on a strategic review into the company’s management team.
“Shareholders have spoken and sent a clear message that the status quo is unacceptable and that a total reset is required,” Tom Treanor, the head of research at Asset Value Investors, which owns a roughly 5% stake in the fund, said in an email. “We look forward to a refreshed board working closely with shareholders to turn the company around.”
Mercuriadis, the former manager of Elton John and Guns N’ Roses, will continue as Hipgnosis Songs Fund’s investment advisor. Mercuriadis founded Hipgnosis in 2017 and took it public on the London Stock Exchange (LSE) in July 2018.
Hipgnosis Songs Fund’s share price rose 1.2% to 75.90 British pence ($0.92) at 11:20 in London.
Global music rights revenue collections reached €10.83 billion ($11.4 billion) in 2022, according to CISAC, the trade organization of collective management societies. That’s a new record that reflects growth of 28% over 2021, as live concert revenue continues to recover from the pandemic and digital income keeps growing.
Income from concerts — the royalties collected from the public performance of songs being played live — was up 185.7% based on a sample of 100 societies, since different organizations account for that revenue differently. And since these numbers are from 2022, when the concert business still hadn’t fully recovered, next year’s numbers will be better still.
The real change is in digital, though, which is now worth €4.08 billion ($4.3 billion), up 33.5% from 2021 and almost double its value from 2019. It now accounts for 37.7% of collections revenue — marking the first time it has been the biggest category — and is likely to be the main engine of growth for years to come. The TV and radio category, traditionally the largest source of revenue, is now No. 2 behind digital with $3.55 billion.
The CISAC Global Collections Report tracks money taken in by collective management organizations for authors’ rights — composers and publishers in the music business, plus audiovisual creators, writers and more. (Neighboring rights revenue for recordings is not included.) More than 90% of the money comes from song rights — specifically, the funds that flow through societies rather than through direct deals.
By any measure, the growth in the CISAC report is remarkable — a record both for the revenue collected and year-on-year growth. And while some of that reflects the unprecedented disappearance and return of the live business, digital growth has been, and will continue to be, steady.
“This is a remarkable return to growth as our whole sector fully recovers from the disastrous three-year pandemic,” said CISAC director general Gadi Oron in the announcement of the results. “While live and public performance have bounced back strongly, the recovery is driven most of all by digital which has now become creators’ largest source of income.”
Much of this growth reflects the changing role of collecting societies in the streaming era. Rather than just represent and license rights in the market in which they operate, societies also compete online. The biggest of the societies — PRS, SACEM and others — now license online rights from writers in most countries.
The growth is worldwide, too. All of the top ten music markets increased collections revenue, with an average growth rate of more than 25%. The biggest market is the United States with €2.616 billion ($2.759) and 30.5% growth; then France, with €1.325 billion ($1.398 billion) and more than 39% growth. Rounding out the top 10 are the United Kingdom, Germany, Japan, Italy, Australia, Canada, Spain and Korea.
Deezer is partnering with French collective management society SACEM to explore the potential impact that “artist-centric” streaming royalty payment models will have on remuneration for songwriters and publishers.
In a joint announcement on Wednesday (Oct. 25), Deezer and SACEM said they were carrying out an “in depth” study that will analyze streaming data to evaluate the viability of different economic models “aimed at remunerating songwriters, composers and publishing rights owners more fairly.”
A representative for Deezer tells Billboard that the first stage of the study commenced earlier this month using data from paid subscription accounts in France in the first quarter of 2023.
The next stage of the project, which is expected to last several months and focuses purely on the French digital music market, will see Deezer and SACEM specifically evaluate the impact that an artist-centric streaming model would have on the society’s 210,000-plus members and international partners, which include Universal Music Publishing Group and Wixen Music Publishing, as well as collective management organizations (CMOs) SOCAN and ASCAP.
“Songwriters, composers and publishers play a crucial role in the music industry as the creative driving force behind the songs we love, and it’s time to evolve how we reward these efforts,” said Deezer CEO Jeronimo Folgueira in a statement.
The joint initiative comes less than two months after Deezer announced it was partnering with Universal Music Group (UMG) on what it calls an “artist-centric music streaming model” for recorded music.
The new artist-centric model for recorded music replaces the traditional pro-rata model whereby one stream equals one play and the total number of plays is divided up by artists and labels according to how many they each accrue.
Since launching Oct. 1, the model has been exclusively limited to France, Deezer’s home market, and, so far, only applies to artists signed to UMG and French independent label Wagram Music. However, a spokesperson for Deezer says discussions are ongoing with all labels and content providers and that the company plans to have achieved “a full rollout with all providers and countries” in 2024.
The new model promises royalty “boosts” for “professional” artists whose music is actively searched for by users, as well as boosts for artists who maintain a level of 1,000 streams per month from at least 500 unique accounts.
It also includes a monetization cap of 1,000 streams for each user, meaning that every single user’s contribution to the royalty pool is counted as 1,000 plays no matter what the actual amount is. (If a subscriber listens to 2,000 streams, for example, then their streams will count half.) Deezer says the cap will help tackle fraud and ensure that royalties are shared more fairly between artists and rights holders.
Following in Deezer’s footsteps, Spotify is understood to be planning similar changes to its streaming royalty model that will come into effect in 2024. These are reported to include introducing minimum annual stream thresholds and financial penalties for music distributors and labels committing fraudulent acts, as well as a minimum play-time length for non-music tracks, such as bird sounds or white noise, before they can generate royalties.
Over the past two years, several other streaming services, including Soundcloud and Tidal, have either introduced or announced that they are exploring different economic models to the standard pro rata streaming model following criticism from creators over low royalty payouts.
In a statement, SACEM CEO Cécile Rap-Veber said the launch of the study into how alternative remuneration models will impact publishers, authors and composers was an “essential” development, “which we hope will make it possible to increase the value of streaming for our members.”
Cesar Pina, a celebrity house-flipper accused of running a “Ponzi-like investment fraud scheme,” said Tuesday (Oct. 24) that New York City radio host DJ Envy had “nothing to do” with the real estate deals in question.
Critics have claimed that Envy, who hosts the popular hip-hop radio show The Breakfast Club, played a key role in Pina’s alleged fraud by promoting him on the air. But in an Instagram livestream Tuesday, Pina said Envy was not directly involved in any of the investments that led to a wave of civil litigation and last week’s federal charges.
“DJ Envy was never in the room with me,” Pina said on the livestream. “DJ Envy has nothing to do with any of these 20 lawsuits of these people who are suing me. It f—ing sucks, bro. It pisses me off that all these people are bashing DJ Envy.”
But later in the same stream, Pina also rejected arguments, advanced by both Envy and his lawyer, that the radio host was actually a potential victim of the alleged scam. “That’s the dumbest s— I ever heard in my life,” Pina said. “He’s not a victim. He was my partner, he was an investor.”
For months, Pina has faced allegations that he promised dozens of investors big profits on real estate deals in Northern New Jersey, only to return little or nothing. Those accusations started on social media but quickly turned into at least 20 civil lawsuits; one victim attorney estimated that more than 30 investors have come forward, seeking over $40 million from Pina and his wife, Jennifer.
Many of those lawsuits, including one filed by music industry veteran Anthony Martini, name DJ Envy as a co-defendant, citing his close ties with Pina — including Pina’s frequent appearances on The Breakfast Club and a series of real estate seminars that the two men co-hosted. Envy has strongly denied the accusations, saying he knew nothing about any foul play and actually lost $500,000 that he invested with Pina.
The situation escalated last week when federal prosecutors charged Pina with running a “a multimillion-dollar Ponzi-like investment fraud scheme.” Though Envy was not charged, the feds specifically noted that Pina had “partnered with a celebrity disc jockey and radio personality” — listed in the charges as “Individual-1” — to boost his reputation as a real estate guru.
In addition to discussing Envy during Tuesday’s livestream, Pina spent more than 20 minutes offering at-times rambling opinions on the entire situation. At one point, he seemed to argue that jilted investors may be less likely to recoup their investments now that the legal process has begun.
“And guess what, you f—ing geniuses? Now the government is involved. Now the government is gonna come in and say, ‘We’re staying all these lawsuits until your criminal proceedings are done,” Pina said. “So guess what? From a year to two years to getting paid — now it could be three to five years! And you guys will be lucky if you see anything. This is the most r——d s— in the world.”
HarbourView Equity Partners has announced two new acquisitions: a share of Fleetwood Mac‘s recorded royalties owned by Christine McVie‘s estate and a share of Pat Benatar and Neil Giraldo’s publishing and recorded music assets.
Financial terms of the transactions were not disclosed.
McVie, who died in November 2022 at age 79, was the keyboardist and one of the vocalists in Fleetwood Mac as well as one of its primary songwriters. She performed on all of the band’s albums beginning with 1971’s Future Games, including the seven-times platinum Fleetwood Mac in 1975 and the 21-times platinum Rumours in 1977. She’s best known for Fleetwood Mac songs including “Don’t Stop,” “Over My Head,” “Say You Love Me,” “Little Lies,” “Everywhere,” “You Make Loving Fun” and “Songbird.”
“Christine’s remarkable talents played an integral role in shaping Fleetwood Mac’s sound,” said Harbourview founder Sheresse Clarke Soares in a statement. “The band’s timeless music and worldwide influence continues to captivate all generations of listeners today. We are honored to uphold that legacy as we welcome Christine’s lifetime of work with the band into HarbourView. Christine is a decorated and iconic legend in the history of Rock ‘n’ Roll. She is a global treasure. We hold her works with pride.”
Together, Benatar and her lead guitarist and producer Giraldo, whom she married in 1982, crafted all of Benatar’s albums, including two that went multi-platinum (Crimes of Passion and Precious Time), and five that went platinum (In the Heat of the Night, Get Nervous, Tropico, Live from Earth and greatest-hits compilation Best Shots). Their biggest hits include “We Belong,” “Invincible,” “Love is a Battlefield,” “Promises In The Dark,” “We Live For Love,” “Heartbreaker” and “Hell Is For Children.” According to a press release, they’ve sold more than 30 million records worldwide.
Clarke Soares added of the Benatar and Giraldo acquisition, “We are overjoyed to welcome into our repertoire the iconic catalog of Pat and Neil. The works are cross generational, inspirational and a perfect complement to our portfolio. The music spans generations and has seen us through moments of hope and healing. We are grateful to be stewards of this canon of work and look forward to partnering with Pat and Neil.”
McVie’s estate was represented in the transaction by her attorney Mario Gonzalez and her estate executors Paul Glass and Martin Wyatt. Benatar and Giraldo were represented by Gary Gilbert at Manatt, Phelps & Phillips. Harbourview was represented by Fox Rothschild in the McVie acquisition and by Derek Crownover at Loeb & Loeb in the Benatar and Giraldo acquisition.
Harbourview’s portfolio includes more than 24,000 songs across master recordings and publishing income streams. Other recent acquisitions include select publishing assets for “Hot Girl Bummer” star Blackbear, select recorded music and publishing assets for Wiz Khalifa, the artist royalty income stream for Nelly, the publishing catalog of Incubus and the catalog of SoundHouse Acquisitions, which holds some rights to master recordings for artists including Tech N9ne, Trey Songz and George Jones.
Thursday could be a pivotal moment in the history of Hipgnosis Songs Fund, which went public in 2018, raising $260 million, and helped legitimize song catalogs as an investment vehicle. At 10 am, shareholders will gather at United House, a stylish workspace in London’s Notting Hill neighborhood, to vote on the continuation of the publicly listed investment trust – essentially, whether to continue or wind down the fund – and a $440 million catalog sale meant to improve its struggling share price.
All signs point to shareholders rejecting both the continuation and the proposed sale of song catalogs to Hipgnosis’ Blackstone-backed sister fund. A failure of the continuation vote isn’t an immediate death knell for the fund – the board will have six months to present investors with a plan to right the ship – but it will never be the same.
If the continuation vote fails, Merck Mercuriadis, the former Elton John and Guns N’ Roses manager who founded the company and became its often provocative public face, will probably continue as the public fund’s investment advisor. But he will be working with a different board of directors at Hipgnosis Songs Fund after two directors, Andrew Wilkinson and Paul Burger, resigned on Wednesday (Oct. 25) and the board’s chair Andrew Sutch signaled he will leave before the next annual meeting. The resulting changes will likely mean more scrutiny over Mercuriadis’ management of its 65,000-song catalog, which includes compositions by Neil Young, Shakira and the Red Hot Chili Peppers.
Mercuriadis has already conceded some ground by accepting a reduced fee for managing the fund’s portfolio if the catalog sale goes through. But Mercuriadis still has the backing of the current board, plus the confidence of many shareholders. “Despite the fact that there’s lots of commentary around governance, conflicts of interest, value achieved, we see no criticism at all for Hipgnosis [Song Management] to actually do its job of managing the portfolio,” says Shavar Halberstadt, a London-based investment trusts analyst at Winterflood Investment Trusts.
As other shareholders see it, Hipgnosis Songs Fund has committed a string of unforced errors that has undercut investors’ confidence in its leadership. “I think all trust left the building, quite frankly, a while ago,” says Stifel analyst Sachin Saggar. “I have not spoken to an investor at this point — and I’ve spoken to quite a few — where any of them have any sense of confidence, trust in the current board, or the [investment] manager, frankly.”
Last week, Hipgnosis Songs Fund canceled an upcoming dividend payment to keep from breaching a debt covenant. According to the board of directors, the decision came after the independent portfolio valuer, Citrin Cooperman, cut its estimate for a retroactive royalty payment related to the Copyright Royalty Board’s decision to raise publishers’ royalty rates from subscription streaming services for the period 2018 to 2022. It wasn’t the first time: In 2021, Hipgnosis Songs Fund committed what it termed an “inadvertent breach” of a credit facility restriction.
Another blow to shareholders’ trust in the board came in 2022 when Hipgnosis Songs Fund refinanced its revolving credit facility to reduce its interest margin and provide greater financial flexibility. Many other companies refinanced debt in 2020 and 2021 to take advantage of low interest rates in the early days of the pandemic. “They waited too long and then the process took very long,” says Halberstadt.
More recently, Hipgnosis Songs Fund’s steps to address its flagging share price have attracted criticism. In September, the company announced a plan to raise $465 million by selling two catalogs — one with a $440 million deal with Hipgnosis Songs Capital, a joint venture of the public fund’s investment advisor and the investment giant Blackstone. If the sale is approved, the proceeds will fund debt reduction and share buybacks to reduce the 60% gap between the current share price and the company’s per-share net asset value (the valuation of its catalog of music rights). But sources tell Billboard that investors will likely vote no to the deal on Thursday.
With the sale price 17.5% below the catalog’s latest valuation, shareholders questioned whether the Blackstone-backed entity was getting a favorable deal, as well as if the process for soliciting other bids was transparent enough. Hipgnosis Songs Fund’s board said at the time that it created “appropriate governance arrangements and information barriers” to properly conduct a sale between two related parties.
The fund’s board said on Tuesday it received one outside offer after talks with 17 prospective buyers, but that ultimately the external parties said “they could not justify” a higher offer price than the $440 million offered by Hipgnosis Songs Capital.
“The shareholders are very upset with the capital stance, the dividend cut, the strategic review, and the related party transaction, and they are highly likely to vote against continuation on Thursday,” predicts Matthew Hose, a London-based analyst for Jeffries. Analysts at Investec encouraged shareholders to vote against both continuation “in order to reinforce the point that the status quo is not an option,” they wrote in an Oct. 19 note to investors. Alternative Value Investors Limited, which owns a 5% stake in Hipgnosis Songs Fund, also encouraged other shareholders to vote against both continuation and the catalog sale in an Oct. 16 letter.
If the continuation vote fails, the board has six months to create a proposal “for the reconstruction, reorganization or winding-up” of the fund, according to its prospectus. “If shareholders vote against continuation on Thursday, it’s almost like it’s the end of the beginning, not the beginning of the end,” says Hose. AVI spoke to “a majority” of shareholders and found none are in favor of an immediate portfolio sale, wrote AVI head of research Tom Treanor.
Despite their frustration, Hipgnosis Songs Fund’s investors aren’t looking for a nuclear option. Rather, shareholders want new leadership on the board and an orderly process, says Saggar. “Nobody is looking at blowing this up. Nobody is looking to do this in a nonsensical way.” AVI emphasized this point in an attempt to sway undecided shareholders. “Voting against continuation should not be perceived as a negative stance to take,” wrote Treanor.
Even if shareholders eventually push to wind down Hipgnosis Songs Fund, there are questions about what amount the catalog could fetch for shareholders. While Hipgnosis Songs Fund has reported that its portfolio is valued at $2.8 billion, sources tell Billboard that its lenders likely value it closer to $1.8 billion, or what banks estimate they could get for the assets in a distressed sale. Two sources tell Billboard they predict the portfolio’s value to be somewhere between those two numbers.
To appease shareholders ahead of the vote, changes to Hipgnosis Songs Fund’s governance are already underway. The board recently hired an executive search firm to aid in finding Sutch’s replacement on the board, and Wilkinson and Berger’s resignations are effective immediately. The board intends to appoint Cindy Rampersaud, an independent non-executive director, to replace Wilkinson as chair of the audit and risk management committees.
In exchange for voting yes to continue the fund, the board has also offered shareholders the right to vote on continuation again in 2026 and 2028, giving them more opportunities to push for change than the standard five-year window between continuation votes typical of U.K. investment trusts. Also, Hipgnosis Songs Fund says it will terminate the investment advisor’s contract if the share price’s discount to NAV is 10% or more for the month of January 2025. Given the current share price — Hipgnosis Songs Fund shares are current trading at 60% below NAV — that could mean the investment advisor receives a 12-month notice in fewer than 15 months from now.
But getting rid of Mercuriadis would create challenges that shareholders might want to avoid. If Mercuriadis departs and Hipgnosis Songs Management is unable to find a replacement satisfactory to the public company’s lenders within 90 days, Hipgnosis Songs Fund would be in default and lenders may demand repayment of all amounts in the revolving credit facility, according to the company’s prospectus. Also, Hipgnosis Songs Management retains an option to acquire Hipgnosis Songs Fund’s portfolio if its investment advisory contract is canceled. When the board initiated a strategic review last week — another move to appease shareholders ahead of the annual meeting — it asked Hipgnosis Songs Management to remove the clause from its contract but was rebuffed. The option to purchase could be problematic for investors who want to maximize bids on the catalog.
“If you didn’t have that option, you could run an open sales process,” says Hose. “Will that option prevent others from bidding?”
Hipgnosis Songs Fund was initially pitched to investors as a source of reliable returns from classic, successful songs during a streaming-led boom in royalties, the Guernsey-based company monetizes proven song catalog and pays dividends. That catalog is seen as the company’s biggest strength and holds more opportunity as streaming expands globally and music businesses explore new ways to monetize their catalogs. But all signs point to shareholders needing more trust in how Hipgnosis Songs Fund is governed.
“The company has a bright future,” writes AVI’s Treanor. “And that may well be with the current manager on revised terms should a new board decide so following consultations with shareholders. But we do, however, strongly believe that a reset is urgently required.”
A female songwriter is suing Kobalt Music Group and former company executive Sam Taylor over allegations that he leveraged his position of power to demand sex from her – and that the company “ignored” and “gaslit” women who complained about him.
In a complaint filed Monday in Los Angeles court, lawyers for Nataliya Nikitenko say that Taylor exploited his control over her career to repeatedly pressure her to have sex with him — an allegation legally termed “quid pro quo sexual harassment.” After initially rebuffing him, she claims she eventually gave in and was “forced to engage in unwanted sexual intercourse.”
“Taylor’s actions were sexually predatorial, as defendant Taylor held a position of power over plaintiff,” Nikitenko’s lawyers write. “In fear of her physical safety and with the knowledge that defendant Taylor would withhold work opportunities, defame plaintiff, and ruin plaintiff’s reputation if plaintiff displeased defendant Taylor … plaintiff reluctantly submitted to defendant Taylor’s sexual advances.”
The lawsuit was filed by an unnamed woman identified only as Jane Doe, a common procedural step in cases where plaintiffs fear retaliation. But the allegations closely mirror public accusations from Nikitenko reported by Billboard last year, and the language of the lawsuit directly confirms Jane Doe is Nikitenko.
In addition to the accusations against Taylor, Nikitenko is also suing Kobalt and company executives Sas Metcalfe, Sue Drew and Lauren Hubert. The songwriter’s lawyers claim that Kobalt and the executives were aware of allegations of impropriety against Taylor, but “silenced” women who made them.
“Kobalt [and its executives] consistently ignored the complaints against [Taylor] throughout his entire employment further empowering him and encouraging to continue his scheme of threatening individuals, sexually assaulting them, sexually battering them, and leveraging his power and ability to advance their careers,” Nikitenko’s lawyers write. They say the company “valued profits over the safety of not only their employees but the artists, musicians, and singers they contracted with.”
Taylor did not return an emailed request for comment on the lawsuit’s allegations; a lawyer who represented him in relation to Nikitenko’s claims to Billboard last year also did not reply. But in the story last year, Taylor’s lawyer said the relationship had been “completely consensual at all times.”
“It is a shame that his efforts to genuinely help her career, unrelated to any relationship, are being turned on him in this manner,” Taylor’s lawyer told Billboard at the time. “We assume that she’s doing this with full knowledge of the complete lack of linkage between his efforts on her behalf and any relationship. That relationship has long since ceased.”
Kobalt, in a statement to Billboard on Wednesday, called the lawsuit’s allegations against the company and its employees “baseless.”
“The complaint contains materially false allegations, and we believe that the plaintiff knows them to be false,” the company spokesman said. “Kobalt has always had a zero-tolerance policy for harassment of any sort, and neither Kobalt nor its executives condoned or aided any alleged wrongdoing by any Kobalt employee, including Sam Taylor. Kobalt will vigorously defend this case and pursue all of its available remedies.”
In her lawsuit, Nikitenko says she signed a publishing administration deal with Kobalt in May 2015, when she was 20 years old. She says she first met Taylor, then 39, at a “writers hang” in February 2016, when he “pulled plaintiff aside and asked for her cell phone number.”
Over the next year, she claims that Taylor (her “point person” within Kobalt) began to sexually harass her via text and in person, including repeatedly “flirting” with her and making inappropriate comments in front of others at Kobalt.
In one alleged incident, Nikitenko claims that she was in a “a very small recording booth” at the Kobalt offices when Taylor entered, shut the door and told her “show me your boobs.” She claims he then “touched, groped, and grabbed” her breasts, leaving her “shocked” and “embarrassed.”
“The fact that defendant Taylor did this in the middle of the office only further illustrated that defendant Taylor was given the latitude and power to do whatever he wanted without and care or concern,” her lawyers write in the lawsuit.
Nikitenko says that as the harassment from Taylor continued to escalate, she eventually succumbed and agreed to go on a date with him because she feared retaliation. When she asked where they should meet, Taylor allegedly responded “your house.” She says she then rebuffed him and they instead met at a Santa Monica restaurant, but that he “insisted and pressured” her to let him take her home.
“Due to plaintiff’s well-founded fear for her career and the power dynamic that defendant Taylor had over her career, plaintiff was forced to engage in unwanted sexual intercourse with defendant Taylor,” Nikitenko’s lawyer wrote. “As soon as defendant Taylor orgasmed, defendant Taylor quickly got dressed and left.”
Over the following two years, Nikitenko claims that Taylor repeatedly leveraged his position to coerce her into more sex, often alternating between sexually-charged texts — including “unwanted nude pictures” — with discussions of career advancement. In several texts quoted in the complaint, Taylor allegedly told her “you owe me.”
“Throughout plaintiff’s contract and business relationship, defendant Taylor required plaintiff to pay defendant Taylor with sexual favors for career opportunities defendant Taylor promised,” her lawyers write. “Defendant Taylor would often say that defendant Taylor needed a ‘fee’ after helping plaintiff. This ‘fee’ referred to sexual favors.”
After he allegedly became “frustrated” with her, the lawsuit claims that Taylor spread a false rumor that Nikitenko, who is white, had “made a racist comment” during a recording session with music producer J. White, who is Black. She claims the false rumor was a form of retaliation, and that it has “prevented plaintiff from working with many other producers and labels.”
According to the lawsuit, Taylor was “terminated” from Kobalt in October 2019; a Kobalt spokesman declined to comment when asked for the exact cause for his exit from the company.
Notably, Nikitenko’s lawsuit says she did not report Taylor’s behavior to anyone at Kobalt until July 2020, well after he had already been terminated. But she says the company and its executives were previously aware of his “history of inappropriate sexual behavior,” and that several other Kobalt employees had complained to HR about him.
“No corrective action was taken by defendant Kobalt which allowed for and encouraged defendant Taylor to continue to sexually harass, threaten, and retaliate against others, including but not limited to, plaintiff,” her lawyers write.
In March 2022, Nikitenko says she attempted to terminate her agreement with Kobalt, citing her alleged mistreatment by Taylor. She claims that the company offered to let her walk away, but only if she repaid her unrecouped balance and signed some form of non-disclosure agreement — an offer she says she refused.
In the time since she went public with her allegations last year, Nikitenko says that Kobalt has “retaliated” against her by “not placing plaintiff in sessions or introducing Plaintiff to other artists to work” and ignoring her direct requests for work.
Taylor joined Republic Records in October 2020, and was promoted to the head of the label’s hip-hop and R&B A&R department in December 2021. It’s unclear if he is currently still employed by Republic, and a label spokesman did not immediately return a request for comment on Taylor’s status. Republic, a unit of Universal Music Group, is not named as a defendant in the lawsuit or accused of any wrongdoing.
The widow of late hip-hop legend MF DOOM, Jasmine Dumile Thompson, filed a lawsuit, claiming that his manager, Eothen “Egon” Alapatt, stole 31 of the rapper’s notebooks that were used to write down many of his beloved songs. This included the tracks from Operation Doomsday (1999), Madvillainy (2004), and MM…FOOD (2004) as well as unreleased songs ideas, musings and “other creative ideations.”
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The case, filed in California federal court Tuesday, is not the first time DOOM’s fans have heard about these notebooks. Back in March, Thompson posted emails between her late husband and Alapatt to the @MFDOOM instagram account with the caption “Egon, Give the Notebooks Back,” sending fans to rally around the rapper’s estate and its struggle to repossess his writing material. Alapatt, who first started working with DOOM as general manager and a&r of Stones Throw Records, has admitted to having the notebooks in the past, according to the complaint, but the estate says he refuses to return them.
Instead, Alapatt is allegedly demanding that the notebooks be “donated to a university or government archive” or a “museum or other institution of [Alapatt’s] choosing,” even though doing so is contrary to his estate’s wishes. “[The notebooks] were intended by DOOM to be secret and confidential,” the lawsuit reads.
It all started in 2010, when the metal-masked rapper travelled to the U.K. to perform but was prohibited from returning to the U.S. due to immigration issues. (He remained in the U.K. until his death on October 31, 2020 at the age of 49). During his absence, the 31 notebooks of lyrical material were left behind in his Los Angeles studio, according to the lawsuit, and Alapatt “took unlawful possession” of the books about six years later.
“Alapatt never consulted with DOOM about his acquisition of the notebooks and took advantage of DOOM’s being out the country to obtain them,” the lawsuit says, but when first confronted by DOOM about the whereabouts of his books, Alapatt allegedly lied at first, saying he didn’t have them. After the landlord of DOOM’s studio allegedly told DOOM that Alapatt did, in fact, have the notebooks, DOOM confronted the manager again.
Alapatt allegedly then told DOOM he got the notebooks because DOOM owed $12,500 in past-due rent, and if someone did not pay it off, the landlord was going to destroy the possessions he left behind. Because Alapatt claims to have paid that rent on DOOM’s behalf, he said that the physical notebooks themselves were legally his property, according the complaint. (Earlier this year, Thompson has come to suspect that DOOM owed no additional rent, and Alapatt simply paid $12,500 to the landlord to buy the books.)
In Summer 2020, Alapatt apparently offered to send DOOM and his family photocopies of the contents of the notebooks for the “sole purpose” of allowing DOOM access but would not give back the physical books themselves. DOOM refused this proposal. In October 2020, shortly before the rapper’s death, the estate says Alapatt sent DOOM a hard drive with large format scans of every notebook he lost, all of which were time stamped between 2018 and March 2020. The lawsuit claims that this proves Alapatt was infringing on his estate’s intellectual property, which is now held by his business entity, Gas Drawls, by creating and disseminating unlawful copies of DOOM’s lyrics.
It is unclear who Alapatt sent these scans to, if anyone, but the lawsuit claims Alapatt was talking to potential buyers, including hip-hop archivists, to sell the notebooks or its copies.
“Although Alapatt has professed that he ‘does not intend to publish’ the unauthorized digital copies he made, he does not have to ‘publish’ the copies of his infringing copies to be liable,” argues the complaint. “Regardless, [DOOM’s estate] alleges that Alapatt actually shared the copies of the notebook he made with others.”
Now, after DOOM’s death, Thompson is intent on getting the notebooks returned to the family, the photo copies destroyed, and “significant compensation” for the damage Alapatt has caused. Along with copyright infringement, the lawsuit alleges “fraud, conversion, unjust enrichment, constructive trust and declaratory relief” and requests a jury trial.
Thompson and Gas Drawls are represented by Miles M. Cooley of Freedman and Taitelman. Alapatt is represented by Kenneth Freundlich of Freundlich Law. Both parties did not immediately return requests for comment on the complaint.
Apple-owned Shazam has introduced a new feature into its music identification app that will allow users to find nearby shows through recommendations based on their Shazam histories, it was announced on Wednesday (Oct. 25). The new feature, called simply Concerts, is already available to users in the Shazam app on iOS within the “My Music” […]