Business
Page: 362
L.A. Live’s 7,100-seat venue will no longer be called the Microsoft Theater, officially changing its name to Peacock Theater after NBCUniversal’s premium streaming service as part of a multi-year naming rights agreement with property owner AEG.
The entertainment district’s 40,000 square foot open-air plaza, formerly known as XBOX Plaza, will now be known as Peacock Place. The agreement, brokered by AEG Global Partnerships, establishes Peacock as the exclusive streaming partner of L.A. Live.
The name change comes a year and a half after anchor arena Staples Center changed its name to Crypto.com Arena in a landmark deal valued at $700 million over 20 years.
Kelly Campbell, president of Peacock at NBCUniversal, commented that the agreement brought “all the elements of our brand to life with the millions of fans who visit L.A. Live each year.” Nick Baker, chief operating officer of AEG Global Partnerships, noted the “content within the Peacock platform is ideal for our audiences and the synergies between both organizations around our variety of events is limitless.”
Lee Zeidman, president of Crypto.com Arena, Peacock Theater and L.A. Live, added, “We are looking forward to the opportunity to collaborate with Peacock to create new content and programming to complement our existing roster of amazing concerts, awards shows and special events we are known for at all of our iconic L.A. Live venues.”
With the comprehensive new agreement, Peacock will have an enhanced brand presence across L.A. Live, including significant interior and exterior signage at Peacock Theater, fixed signage at Peacock Place, a branded content studio and customized fan activations and brand integrations throughout select premium locations of the sports and entertainment district.
Peacock will also engage fans via signature digital signage elements, including a brand-new, dedicated LED marquee at the corner of Figueroa and Olympic Blvds., one of downtown L.A.’s busiest intersections. With this new signage, Peacock can highlight its latest content including key series premieres, promotions and special events taking place at L.A. Live over the course of the partnership. Once complete, the largest of the two new signs will measure more than 29 feet high and 56 feet wide. The second will stand at more than 29 feet high and 88 feet wide, providing Peacock with premium exposure to millions of people each year. The signs will connect at the corner, with one facing Figueroa and the other facing Olympic and will remain a permanent fixture at L.A. Live for the length of the partnership.
WASHINGTON (AP) — President Joe Biden is hosting executives from Live Nation, Airbnb and other companies at the White House on Thursday to highlight his administration’s push to end so-called junk fees that surprise consumers. Biden prioritized the effort to combat surprise or undisclosed fees in his State of the Union address and has called […]
BMG acquired the recording catalog of British band (and Rock & Roll Hall of Famers) The Hollies. The deal includes over 20 studio, compilation, live and tribute album titles and rarities that are wholly owned by the group, including Evolution and Butterfly (1967), Hollies Sing Dylan and Hollies Sing Hollies (1969), Confessions of the Mind (1970); Distant Light (1971), Romany (1972), Out on the Road (1973); Hollies (1974), Another Night (1975), Write On and Russian Roulette (1976), Hollies Live Hits (1977), A Crazy Steal (1978), Five Three One – Double Seven O Four (1979), Buddy Holly (1980), and Then, Now, Always (2009). The agreement encompasses eight of The Hollies’ most-streamed tracks, including “Carrie Anne,” “King Midas In Reverse,” “Jennifer Eccles,” “On A Carousel,” “He Ain’t Heavy, He’s My Brother,” “Long Cool Woman (in a Black Dress)” and “The Air That I Breathe,” as well as the group’s cover versions of “4th of July, Asbury Park (Sandy)” (Bruce Springsteen), “Boulder to Birmingham” (Emmylou Harris) and “Say It Ain’t So, Jo” (Head).
Soundtrack Your Brand, a global music streaming service for businesses, announced a $15 million pre-growth round led by Matt Pincus‘ MUSIC in partnership with Liontree, JS Capital Management and Schusterman Family Investments. The round also included funding from music investors Dundee Partners and was supported by all major existing Soundtrack Your Brand investors including Balderton Capital, Fuel Venture Capital, Industrifonden, Telia and DIG. The investment will allow Soundtrack Your Brand to “double down” on its go-to-market strategy, according to a press release. Along with MUSIC’s investment, Pincus will join Soundtrack Your Brand’s board. In 2024, the company plans to raise an additional growth round.
ADA Worldwide partnered with Rostrum Records to distribute the indie label’s entire catalog and new releases. Recent Rostrum releases include Fat Nick’s “Songs on the Radio” and DC The Don’s “Funeral” as well as new music from Alé Araya and Brevin Kim. Forthcoming releases include music from Fat Nick, Lou Phelps and My Favorite Color.
Yoto, an audio platform for kids that’s behind screen-free portable audio players the Yoto Player and Yoto Mini, signed a deal with Warner Music Group that will make music from some of WMG’s artists available on the players. The partnership kicks off in June with music from Super Simple Songs, a popular YouTube channel boasting original children’s songs and traditional nursery rhymes that’s been distributed by WMG’s arts music division since 2020. Next year, Yoto will create “cards” featuring music from a curated group of WMG’s pop, rock and soul artists.
Believe signed a marketing and distribution deal with Global Records Germany, the new Berlin branch of independent label Global Records. The first release under the agreement is “Party Songs” by Gamuel Sori & INNA, which dropped June 9.
German television personality Jan Böhmermann appears to have single-handedly knocked more than 1 billion euros ($1.15 billion) from the market value of CTS Eventim after he criticized the concert promoter and ticketing company on his late-night talk show ZDF Magazin Royale on German public television on Friday.
According to various media reports, Böhmermann, in a 23-minute news-styled feature, bemoaned the company’s dominant market position in promotion and ticketing and a lack of transparency about the fees added to tickets. “Eventim is practically the German event industry,” the satirist said (as translated to English) He singled out the company’s re-sale platform, fanSale, which allows ticket holders to sell tickets at a premium to their face values. “Why fight the black market when you can earn money yourself?” he asked.
Böhmermann also said that CTS Eventim received 15 million euros ($16 million) of COVID-19 economic aid from the Federal Government Commissioner for Culture and the Media. In total, the company received 272 million euros ($295 million) in economic aid from Germany and elsewhere from 2020 to 2022, according to the company’s financial statements. He noted that a director, Juliane Schulenberg, is the daughter of CTS Eventim founder and chairman Klaus-Peter Schulenberg. She has been a member of the CTS Eventim’s supervisory board since May 2016, according to the company’s website.
“Unfortunately, many facts are twisted and not the truth,” a CTS Eventim spokesperson told Billboard in an email. While Böhmermann suggested Juliane Schulenberg influenced COVID-19 aid received by CTS Eventim, the company’s spokesperson says she “had no professional position in this regard and therefore no influence.”
ZDF Magazin Royale made a significant impact when the market opened after the weekend. Shares of CTS Eventim fell 8.9% on Monday and another 7.5% on Tuesday, bringing the two-day decline to 15.7% — a 1.07 billion euros ($1.15 billion) decline in market capitalization. After a 0.8% gain on Wednesday, shares of CTS Eventim were up 1.3% year to date.
CTS Eventim is the largest concert promotion and ticketing company in Europe and had revenues of 1.9 billion euros ($2 billion) and sold 69 million tickets online in 2022. Its portfolio includes EDM promoter ALDA Germany; the Rock am Ring and Rock im Park festivals; numerous ticketing brands; EMC Presents, a partnership with U.S. tour promoter and producer Michael Cohl; and Eventim Live Asia, a partnership with former Live Nation executive Jason Miller based in Singapore.
U.S. audiences will recall a similar segment about the country’s dominant ticketing company, Ticketmaster, by comedian John Oliver on his HBO show Last Week Tonight in 2022. Oliver touched on the same themes brought up by Böhmermann: market dominance, rising ticket fees and ownership of a secondary market that profits from in-demand tickets’ re-sale values. Oliver had a negligible effect, however, as the share price of Ticketmaster’s parent company, Live Nation, dropped just 0.5% the day after the episode aired. A chance of government intervention has given Live Nation investors pause on numerous occasions, however, such as politicians’ criticism of Ticketmaster’s Taylor Swift pre-sale in November and a 2018 New York Times article about Live Nation’s alleged anticompetitive business practices.
Just as Live Nation and Ticketmaster are under constant scrutiny in the U.S., CTS Eventim routinely falls into the crosshairs of consumer advocates and government regulators. In February, more than 1,500 consumers in Germany had joined a model declaratory judgment against CTS Eventim filed by the Federation of German Consumer Organizations. The consumer advocacy group alleges the company did not refund ticketing fees for cancelled events. In 2018, CTS Eventim’s share price fell as much as 10% after Germany’s Federal Supreme Court ruled the fees charged for printing out tickets ordered online were illegal. Also in 2018, the German Federal Cartel Office banned CTS Eventim from having exclusive ticketing agreements with promoters and box offices. In 2017, the Cartel Office blocked CTS Eventim from acquiring promoter and booking agency Four Artists, which a German court upheld the following year.
Anitta has parted ways with her longtime manager Brandon Silverstein, according to a source familiar with the situation. The split was first reported by Variety. The change comes on the heels of Anitta’s April 4 departure from Warner Music Group after having long voiced irritation with the label on social media, including a tweet thread […]
During the National Music Publishers’ Association (NMPA) annual meeting on Wednesday (June 14), the trade organization said it calculated total U.S. publishing revenue at $5.6 billion in 2022, up from $4.7 billion in 2021 — a more than 19% increase year over year.
During his presentation at the meeting, held at Alice Tully Hall at Lincoln Center in New York, NMPA president/CEO David Israelite further noted that $5.6 billion figure does not include monies likely owed to publishers after the Copyright Royalty Board’s recent ruling upholding a rate increase for streaming services, rising gradually from 11.4% to 15.1% of service revenue for the 2018-2022 period. Once that increase is retroactively applied later this year, publishers’ should see a substantial additional payday.
Based on revenues earned in January and February 2023, compared to the same two months from 2022, Israelite said publishing earnings are up 27% so far this year. That’s due to a number of factors, including an increased royalty rate from streaming services that’s now set at 15.1% of revenue in 2023 and will increase gradually to 15.35% in 2027. Streaming services raising their subscription prices have also contributed to higher revenues, as well as growing diversity in publishers’ revenue streams.
Since 2014, when U.S. publishers earned $2.2 billion, annual revenues have grown more than 160% overall, according to the NMPA.
Breaking down revenue categories, performance royalties made up 48% of revenue — dropping below 50% for the first time. That fall in percentage, however, was “because the growth in other categories has been so significant, specifically with regard to synchronization,” Israelite said. Synch revenues made up 26.07% of earnings, mechanical 20.27% and other 5.37%.
Elsewhere during the event, NMPA executive vp/general counsel Danielle Aguirre announced that the organization had also distributed $66 million to its members from legal recoveries and settlements last year. “This is equal to a 456% average return on your dues,” she said, adding that the amount collected brings the NMPA’s all-time legal recovery number to $1.2 billion.
In a blockbuster announcement, Aguirre also revealed that NMPA members were suing Twitter over allegations of widespread copyright infringement, with dozens of music publishers seeking hundreds of millions in damages for infringing over 1,700 songs. If the claims are proven, the social media giant could be forced to pay as much as $255 million in damages.
Apart from Israelite’s state of the union address, which provided publishers with key analysis on the successes and pitfalls of the previous year, the meeting also doled out awards to several individuals. Among them, the organization honored RIAA chairman/CEO Mitch Glazier with the NMPA Industry Legacy Award, Senator Dick Durbin of Illinois with the NMPA President’s Award for his leadership in passing the Music Modernization Act and the CASE Act, Brandi Carlile with the Songwriter Icon Award and Ashley Gorley with the first-ever NMPA Non-Performing Songwriter Icon Award.
Coming out to perform in honor of Carlile was Allison Russell, who performed Carlile’s “This Time Tomorrow”; and Brandy Clark, who performed Carlile’s “You and Me on the Rock.” Coming out for Gorley was special guest Luke Bryan, who performed two Gorley-penned hits: “What Make You Country” and “Play It Again.”
This story is developing.
The National Music Publishers’ Association says its members are suing Twitter over allegations of widespread copyright infringement and seeking hundreds of millions in damages, telling the Elon Musk-owned site it can no longer “refuse to pay songwriters and music publishers.”
In the lawsuit, which the group plans to announce during its annual meeting Wednesday (June 14), dozens of music publishers allege that Twitter had infringed more than 1,700 different songs — a claim that, if proven, could put the social media giant on the hook for as much as $255 million in damages.
“Twitter profits handsomely from its infringement of publishers’ repertoires of musical compositions,” the music companies write in their complaint, which was obtained by Billboard. “Twitter’s unlawful conduct has caused and continues to cause substantial and irreparable harm to Publishers, their songwriter clients, and the entire music ecosystem.”
Twitter did not respond to immediate request for comment.
The plaintiffs named in the lawsuit, set to be filed in Tennessee federal court, include Concord, UMPG, 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.
The announcement that the NMPA would be pursuing legal action against Twitter shouldn’t come as a total surprise. In a February speech at the Association of Independent Music Publishers (AIMP) summit, NMPA president and CEO David Israelite called Twitter his “top legal focus” this year. He warned that the company was “hiding behind” the Digital Millenium Copyright Act – the federal law that limits how websites like Twitter can be sued over copyright infringement by their users.
In a statement on Wednesday, Israelite echoed that threat, saying that Twitter could no longer “hide behind the DMCA and refuse to pay songwriters and music publishers.”
“Twitter stands alone as the largest social media platform that has completely refused to license the millions of songs on its service,” Israelite said in a statement. “Twitter knows full well that music is leaked, launched, and streamed by billions of people every day on its platform.”
The DMCA provides websites like Twitter with a legal immunity — a “safe harbor” — against copyright lawsuits over material uploaded by their users, so long as they promptly remove infringing content and ban repeated violators from the platform. But in their new lawsuit, the publishers allege that Twitter failed to do either, meaning the site has legally forfeited the DMCA’s protections.
“Twitter routinely ignores known repeat infringers and known infringements, refusing to take simple steps that are available to Twitter to stop these specific instances of infringement of which it is aware,” the publishers wrote.
The NMPA annual meeting each year is known to feature at least one bombshell announcement from Israelite. Last year, the NMPA launched a legal action against over a hundred different apps that skim music from digital services without obtaining licenses, sent cease and desist notices to Apple and Google app stores, and filed a copyright infringement lawsuit against music video-making app Vinkle. In 2021, Israelite announced $200 million copyright infringement lawsuit against Roblox for hosting thousands of unlicensed songs within the game’s library.
The NMPA’s public grievances with Twitter date back to at least April 2021, when a Billboard published a guest column, co-penned by Israelite and RIAA chief Mitch Glazier. In it, the two leaders called for social media platform to license music and noted that in the last year music creators had sent more than 2 million notices to Twitter of unlicensed and infringing appearances of copyrighted music on the platform, more than 200,000 of which were of unreleased songs. “The company’s response to date has been totally inadequate,” the article lamented. It went on to suggest three ways for Twitter to address the grievances the music business has had with its operations: “licensing music and pay music creators like others do,” “better content protection tools,” and “stop demanding exorbitant payments from creators for content protection.”
Since Jack Dorsey stepped down from Twitter in November 2021, the stability of the company has been in constant flux. By the time Musk bought the company and assumed the role of CEO in October 2022, Twitter’s future seemed even more uncertain amid Musk’s controversial leadership, widespread cost cutting measures, and restructuring of the company. Since Dorsey’s departure, Israelite has taken to the platform to express his hope that subsequent chiefs like Parag Agrawal, Musk and now Linda Yaccarino would “finally” “take a new approach” with licensing music.
But in Wednesday’s lawsuit, the publishers said things had only gotten worse: “Twitter’s change in ownership in October 2022 has not led to improvements in how it acts with respect to copyright. On the contrary, Twitter’s internal affairs regarding matters pertinent to this case are in disarray.”
Licensing for games, social media, and other applications is quickly becoming a major component of music publishers’ income. At last year’s annual meeting, NMPA announced that licensing from new revenue streams — like Twitch, Roblox, Peloton and others — now account for 29.11% of music publishers’ income, something that is expected to only rise over time. This has come with the success of the NMPA’s aggressive legal agenda in recent years, and has helped publishers diversify their income from streaming, which is strictly regulated in the U.S. by the Copyright Royalty Board.
In the lawsuit against Twitter, the publishers noted that TikTok, Facebook, Instagram, YouTube, and Snapchat had all entered into such broader licensing deals, enabling their users to use copyrighted music while still compensating songwriters. Twitter, they wrote, cannot not continue to be the exception.
“Twitter is seizing for itself an artificial competitive advantage against companies that are not violating copyright law, undercutting existing markets, cheapening the value of music, and undermining Publishers’ well-established business models,” lawyers for the publishers wrote.
LONDON — Amid increasing concern among artists, songwriters, record labels and publishers over the impact of artificial intelligence (AI) on the music industry, European regulators are finalizing sweeping new laws that will help determine what AI companies can and cannot do with copyrighted music works.
On Wednesday (June 14), Members of the European Parliament (MEPs) voted overwhelmingly in favor of the Artificial Intelligence (AI) Act with 499 votes for, 28 against and 93 abstentions. The draft legislation, which was first proposed in April 2021 and covers a wide range of AI applications, including its use in the music industry, will now go before the European Parliament, European Commission and the European Council for review and possible amendments ahead of its planned adoption by the end of the year.
For music rightsholders, the European Union’s (EU) AI Act is the world’s first legal framework for regulating AI technology in the record business and comes as other countries, including the United States, China and the United Kingdom, explore their own paths to policing the rapidly evolving AI sector.
The EU proposals state that generative AI systems will be forced to disclose any content that they produce which is AI-generated — helping distinguish deep-fake content from the real thing — and provide detailed publicly available summaries of any copyright-protected music or data that they have used for training purposes.
“The AI Act will set the tone worldwide in the development and governance of artificial intelligence,” MEP and co-rapporteur Dragos Tudorache said following Wednesday’s vote. The EU legislation would ensure that AI technology “evolves and is used in accordance with the European values of democracy, fundamental rights, and the rule of law,” he added.
The EU’s AI Act arrives as the music business is urgently trying to respond to recent advances in the technology. The issue came to a head in April with the release of “Heart on My Sleeve,” the now-infamous song uploaded to TikTok that is said to have been created using AI to imitate vocals from Drake and The Weeknd. The song was quickly pulled from streaming services following a request from Universal Music Group, which represents both artists, but not before it had racked up hundreds of thousands of streams.
A few days before “Heart on My Sleeve” become a short-lived viral hit, UMG wrote to streaming services, including Spotify and Apple Music, asking them to stop AI companies from accessing the label’s copyrighted songs “without obtaining the required consents” to “train” their machines. The Recording Industry Association of America (RIAA) has also warned against AI companies violating copyrights by using existing music to generate new tunes.
If the EU’s AI Act passes in its present draft form, it will strengthen supplementary protections against the unlawful use of music in training AI systems. Existing European laws dealing with text and data-mining copyright exceptions mean that rightsholders will still technically need to opt out of those exceptions if they want to ensure their music is not used by AI companies that are either operating or accessible in the European Union.
The AI Act would not undo or change any of the copyright protections currently provided under EU law, including the Copyright Directive, which came into force in 2019 and effectively ended safe harbor provisions for digital platforms in Europe.
That means that if an AI company were to use copyright-protected songs for training purposes — and publicly declare the material it had used as required by the AI Act — it would still be subject to infringement claims for any AI-generated content it then tried to commercially release, including infringement of the copyright, legal, personality and data rights of artists and rightsholders.
“What cannot, is not, and will not be tolerated anywhere is infringement of songwriters’ and composers’ rights,” said John Phelan, director general of international music publishing trade association ICMP, in a statement. The AI Act, he says, will ensure “special attention for intellectual property rights” but further improvements to the legislation “are there to be won.”
There is a bright blue neon sign letting guests know they have arrived at the Breakaway House. But in keeping with the conspicuous tone of their new neighborhood, the lit up sign isn’t visible to visitors until after they’ve made their way inside of the gates of the 4,000 square foot home housing the offices of one of North America’s fastest-growing festival brands.
The neon sign is one of a half-dozen Breakaway Festival art pieces inside the house, where Breakaway’s marketing team works around a large kitchen table, while another groups gathers around a poolside table for a midday strategy session. Breakaway co-founder Adam Lynn and chief growth officer William Van Orsdell serve as host to a rotating door of music executives, finance advisors and journalists booked for another day of meetings inside the new L.A. digs to discuss the company’s recent expansion.
“William and I have no fundraising experience at all, but we went out and and raised quite a bit of money,” Lynn tells Billboard. “We’re now closing our $6 million series A, which has given us a lot of growth capital to expand our boutique festival to seven markets this year, with a focus on dance music and pop music.
The $6 million investment round was led by private investment firm RSE Ventures with participation from Marshall Sandman‘s Animal Capital, Honey founder George Ruan, New York Rangers captain Jacob Trouba, Splice co-founder Steve Martocci and investment firms Human Ventures, Bustle Digital Group (BDG) and Gross Labs. Breakaway also recently signed a partnership with Another Planet Entertainment for a San Francisco event and has eyes to expansion in other markets.
Launched in 2016 in Columbus, Ohio with EDM and hip-hop acts including Alison Wonderland, Dillon Francis, Rae Sremmurd and RL Grime to college towns, the festival expanded to three locations the following year and modeled itself as a dance and pop-driven Vans Warped Tour, bringing an approachable high-end dance experience to underserved markets.
Fast forward to 2023 and Breakaway has expanded to seven U.S. cities and launched Spring Break(away) with emerging curated events company All Roads Traveled, hosting five weekends in March of entertainment and immersive experiences in Mexico. Built for Gen Z and young Millennial music fans, Breakaway has worked with The Chainsmokers, Halsey, Kygo, Zedd, Migos, Odesza, Post Malone, Future, Illenium, Khalid, Twenty One Pilots, Jack Harlow, Machine Gun Kelly, Chelsea Cutler and Juice WRLD, among many others.
“What began in 2016 as a music festival has grown into a multi-faceted entertainment brand that continues to change the way thousands of consumers across the country experience and enjoy music,” said Matt Higgins, cofounder and CEO of RSE Ventures. “Adam and his team have done an incredible job building a brand and company with a clear mission, and we’re excited to partner with these next-generation music leaders as they continue scaling Breakaway’s geographic footprint and range of offerings.”
Lynn said he sees Breakaway as platform for connecting young music fans with artists, experiences and brands and partners looking to connect with Gen Z and young millennials, deploying new capital to expand its national footprint and support its ultimate mission of “powering the voice of today’s generation through music, community, art, technology and digital content.”
“This marks an important milestone for Breakaway as we look to the future, opening the door to even more opportunities for innovation as we expand both the breadth and depth of experiences for Millennial and Gen Z consumers,” Lynn says. “When you can actually see your favorite artist on a stage and not just on a jumbo screen, it changes the way you listen to music — it becomes an unforgettable experience. We are building a boutique brand at scale and trying to give every fan that one moment they can remember.”
Van Orsdel adds, “As one of the last independent groups in live entertainment, we carry the flag of the ‘underdog’ in the music industry. We are so proud of the group of strategic investors we put together to drive Breakaway’s ascent through reimagined real-life experiences, digital opportunities and more that will help turn the brand into a household name.”
50 Cent has reached a settlement with Rémy Martin to end a lawsuit that claimed his Branson brand of cognac copied the design of the company’s bottles.
E. Rémy Martin & Co. sued in 2021, claiming the liquor brand owned by the rapper (real name Curtis Jackson) had infringed patent and trade dress rights by mimicking Rémy’s XO bottle. 50 Cent’s company, Sire Spirits, called the case “meritless” and accused the bigger rival of trying to “destroy a competitor.”
But in a filing on Monday, the two sides said they had squashed their beef — reaching a “confidential” settlement agreement on June 1 that would fully resolve the litigation. The specific terms of the deal, like whether any money was exchanged or products would be changed, were not made public.
On Wednesday, a spokesman for Rémy confirmed to Billboard the agreement would end the case, but declined to offer more details: “Rémy appreciates and respects Mr. Jackson’s entry into the Cognac market and the parties share a common vision for the future of this exceptional and precious spirit. The parties are gratified that this matter could be resolved amicably.”
An attorney for Sire Spirits did not immediately return a request for comment.
50 Cent launched Branson in 2018, selling the cognac in a circular bottle with gem-like facets that was designed by the rapper himself. But in August 2021, Rémy Martin sued on the grounds that the bottle was “nearly indistinguishable” from the “toroidal” shape of its own famous bottle.
“Defendants have willfully and blatantly designed their bottle to unfairly capitalize on the goodwill and reputation that Plaintiff’s bottle has achieved and to unabashedly profit from its bad faith infringement,” the company’s lawyers wrote in their complaint.
Rémy Martin accused the Branson bottle of infringing both design patents and trade dress — a form of trademark that covers the well-known shape or packaging of a product, like a Coca-Cola bottle or blue Tiffany’s box. The lawsuit claimed the bottle was “a blatant attempt” to make consumers think of Rémy Martin.
In October, 50 Cent and Sire fired back, blasting the rival for trying to “eliminate” an upstart competitor and “monopolize the Cognac market.” The company said Rémy Martin’s case was so weak that it should be dismissed at the outset.
“This action is a naked effort to use meritless litigation to financially destroy a competitor,” Sire’s attorneys wrote at the time. “Rémy Martin must be stopped, and the claims against Sire Spirits should not be allowed to survive.”
But in a pair of rulings last year, U.S. District Judge Alvin K. Hellerstein refused to dismiss the case against 50 Cent’s company. “This is not a case in which the claimed and accused designs are so plainly dissimilar that it is implausible that an ordinary observer would confuse them,” the judge wrote at the time.
Those decisions sent the case deeper into litigation and headed toward an eventual trial. But the case has largely been on ice for months as the two sides worked toward the settlement that was reached earlier this month.