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A prominent ’90s hip-hop duo is suing Universal Music Group for withholding royalties tied to what they’re alleging is a “sweetheart” deal the label reached with Spotify in the late 2000s.
Filed Wednesday (Jan. 4) in U.S. district court in New York by attorneys representing Andres Titus (Dres) and William McLean (Mista Lawnge), members of the hip-hop duo Black Sheep, the lawsuit claims UMG owes its artists approximately $750 million in royalties deriving from the company’s stock in Spotify. Under a licensing deal they claim UMG and the streaming giant reached in 2008, the label agreed to receive lower royalty payments in exchange for equity in the then-nascent streaming company. But Titus and McLean say the label breached their contract with Black Sheep and other artists by withholding what they argue is the artists’ rightful 50% share of UMG’s now-lucrative Spotify stock — and otherwise failing to compensate them for the lower royalty payments they received as a result of the alleged deal.
“Rather than distribute to artists their 50% of Spotify stock or pay artists their true and accurate royalty payments, for years Universal shortchanged artists and deprived Plaintiffs and Class Members of the full royalty payments they were owed under Universal’s contract,” the complaint reads. Titus and McLean further claim that Universal deliberately omitted from royalty statements both the company’s ownership of Spotify stock and the lower streaming royalty payments that resulted from its alleged deal with the streaming service.
“Over time, the value of the Spotify stock that Universal improperly withheld from artists has ballooned to hundreds of millions of dollars,” the complaint continues. “These and the other wrongful conduct detailed herein resulted in the Company’s breaching its contracts with artists, violating the covenant of good faith and fair dealing that is implicit in those contracts, and unjust enrichment at the expense of its artists.”
In a statement sent to Billboard, a UMG spokesperson denied Titus and McLean’s claims: “Universal Music Group’s innovative leadership has led to the renewed growth of the music ecosystem to the benefit of recording artists, songwriters and creators around the world. UMG has a well-established track record of fighting for artist compensation and the claim that it would take equity at the expense of artist compensation is patently false and absurd. Given that this is pending litigation, we cannot comment on all aspects of the complaint.”
According to the lawsuit, Titus and McLean signed a record contract with Polygram in July 1990 (later amended and revised in July 1991) as Black Sheep — the duo best known for the hit rap single “The Choice Is Yours (Revisited)” from their RIAA Gold-selling 1991 album A Wolf in Sheep’s Clothing. Black Sheep’s record contract was then assumed by UMG after the company merged with Polygram in 1998.
UMG acquired just over 5% of Spotify shares “in or around the summer of 2008” in a licensing agreement in exchange for lower royalty payments, the complaint adds, citing a 2018 Music Business Worldwide report. It claims that Universal acquired additional Spotify shares through its 2011 purchase of EMI, which had acquired shares in the streaming company around the same time, the suit alleges. It then cites UMG’s own prospectus, released in September 2021, revealing that the label held roughly 6.49 million, or roughly 3.35%, of Spotify shares as of June 30, 2021, valued at 1.475 billion euros ($1.79 billion).
It’s worth noting that UMG’s stake in Spotify has become significantly less lucrative since June 30, 2021, however. As of Wednesday’s closing price, UMG’s stake in Spotify is now worth just $560 million — the result of Spotify shares falling 70.5% over the past 18 months. Notably, Spotify isn’t the only streaming service UMG has equity in; according to the same prospectus, it also owns 0.73% of Tencent Music Entertainment shares, a stake that’s currently worth $112.5 million.
Included as an exhibit in the complaint is Black Sheep’s amended July 1991 contract with Polygram, which states that royalties paid to Titus and McLean “‘shall be a sum equal to fifty percent (50%) of [Universal’s] net receipts with respect to’ the ‘exploitation’ for any ‘use or exploitation’ of ‘Master Recordings’ created by Plaintiffs.” The plaintiffs claim they and other UMG artists are thereby entitled to 50% of the labels’ Spotify stock but that UMG has failed to pay it. This demand stems from a couple of broad assumptions: that all artists in the class signed similar contracts and that they were similarly not compensated with a portion of UMG’s stock holdings in Spotify.
The plaintiffs are asking for compensatory damages, punitive damages and an injunction “or other appropriate equitable relief” requiring UMG “to refrain from engaging in deceptive practices” as outlined in the lawsuit.
UMG isn’t alone among the major labels in acquiring Spotify stock — both Sony and Warner Music, as well as indie Merlin, also have or had stakes in the company. In May 2018, Sony sold half of its 5.707% stake in Spotify for an estimated $761 million, while that same month Merlin announced it sold its entire stake for an unknown amount and had shared the proceeds with its members. Warner followed suit in August 2018 when it sold its entire 2% stake in the streamer for $504 million, with the company announcing that around $126 million of the proceeds would be paid out to the company’s artists.
UMG has yet to sell any of its stock in the streaming giant.
-Additional reporting by Glenn Peoples
You can read the full lawsuit below.
A federal judge has tossed out a sexual abuse lawsuit filed against Marilyn Manson by model Ashley Morgan Smithline, citing the fact that she failed to retain a new lawyer after splitting with her old legal team last fall.
Smithline’s lawsuit, one of many claims of sexual abuse filed against Manson (real name Brian Warner) over the past two years, alleged that the rocker raped and abused her multiple times between 2010 and 2013. But in an order issued Tuesday (Jan. 3), Judge Fernando L. Aenlle-Rocha dismissed the case.
The reason? After Smithline split with her attorney Jay D. Ellwanger in October, the judge gave her until Dec. 5 to find a new lawyer — or to explain how she’d handle the case on her own as a so-called pro se litigant. She never did either, leading to Tuesday’s decision.
“Plaintiff has not filed a response as of the date of this order,” the judge wrote. “The court, therefore, dismisses this action … for plaintiffs failure to prosecute the action.”
The case was dismissed “without prejudice” — meaning Smithline could still refile the same claims at some point in the future. She could not immediately be located for comment; Ellwanger did not return a request for comment.
In a statement to Billboard, Manson’s attorney Howard King praised the outcome: “We thank and commend Ashley Smithline for dismissing her claims against Brian Warner without seeking or receiving anything in return. Ms. Smithline has refused to be manipulated by others who are trying to pursue their own agendas against Mr. Warner. We wish her well and will continue to work to assure that a significant price will be paid by those who have tried to abuse our legal system.”
Manson has faced multiple accusations of wrongdoing over the past two years.
Evan Rachel Wood, who began publicly dating Manson in 2007 when she was 19 and he was 39, accused him in a February 2021 Instagram post of “grooming me when I was a teenager” before he “horrifically abused me for years.” Those allegations were followed by separate lawsuits from Smithline, former assistant Ashley Walters, Game of Thrones actress Esme Bianco and a Jane Doe accuser.
In her lawsuit, Smithline made graphic and disturbing allegations of sexual assault against Manson. She alleged that she and Manson began a consensual relationship in 2010, but that it “quickly became apparent that consensual sex was not enough for Mr. Warner.”
“Ms. Smithline awoke from unconsciousness with her ankles and wrists tied together behind her back and Mr. Warner sexually penetrating her,” Smithline’s lawyers wrote in the lawsuit. “Ms. Smithline told Mr. Warner to stop and said no multiple times, and Mr. Warner told her to ‘shut the fuck up’ and ‘be quiet.’”
Manson has denied all of the allegations against him and even filed his own defamation lawsuit accusing Wood and another woman of orchestrating the many legal attacks against him. In the March 2022 complaint, he said Wood’s own “malicious falsehood” was part of an “organized attack” aimed at derailing his career, in which she had “secretly recruited, coordinated, and pressured prospective accusers to emerge simultaneously.” Wood denies those allegations.
Mexican pop star Gloria Trevi is facing a new lawsuit over a decades-old claim of sexual assault against two minors.
In a civil complaint filed in Los Angeles on Friday (Dec. 30), two Jane Does allege the singer-songwriter and her ex-producer, Sergio Andrade, “groomed” and “exploited” them when they were between the ages of 13 and 15 back in the early 1990s.
The lawsuit, independently obtained by Billboard and first reported on Wednesday by Rolling Stone, does not specifically name Trevi or Andrade — listing them only as anonymous Doe defendants — but based on the timeline of events and the details of the albums included in the suit, it’s clear that Trevi and Andrade are the defendants.
According to the plaintiffs, Trevi and Andrade used their “role, status, and power as a well-known and successful Mexican pop star and a famous producer” to coerce sexual contact with them over a course of years, much of it occurring in California. As a result of the sexual harassment, abuse and assault, the Plaintiffs have “suffered severe emotional, physical and psychological distress, including humiliation, shame, and guilt.”
The 30-page lawsuit, which includes claims of childhood sexual abuse, harassment and/or assault, was filed just days before the expiration of California’s Child Victims Act, which temporarily suspended the statute of limitations for sexual abuse lawsuits. After a three-year window of availability, the deadline to file such long-delayed lawsuits was Dec. 31, 2022.
The new allegations against the “Todos Me Miran” singer come nearly 20 years after she was acquitted by a judge and found not guilty on charges of rape, kidnapping and corruption of minors. This resulted in the immediate release of Trevi, who was being held at a prison in Chihuahua, Mexico and faced up to 25 years behind bars.
The previous trial occurred after Trevi, Andrade and backup singer María Raquenel Portillo, also known as Mary Boquitas, were arrested in January 2000 in Rio de Janeiro for allegedly luring young girls into a cult-like pornographic ring. Former vocalist Karina Yapor, who filed criminal charges against the so-called Trevi clan, alleged that backup recruits wanting to join the band were forced to have sexual relations with Andrade.
A representative for Trevi declined a request for comment.
Read the entire lawsuit here:
The final two installments of Lifetime’s Surviving R. Kelly docuseries series ended with a pair of bombshell revelations about the imprisoned singer’s controversial marriage to a then-underage Aaliyah. The two episodes that debuted on Monday and Tuesday, focused in on Kelly’s 2022 federal trial, which included allegations that the singer and his team allegedly forced Aaliyah’s family to sign a non-disclosure agreement in the wake of the annulment of the performers’ brief marriage.
Kelly and Aaliyah were married in secret in August 1994 when the “Rock the Boat” singer was just 15, even though their marriage certificate listed her age as 18; the marriage was reportedly annulled by Aaliyah’s parents in Feb. 1995. Interviews with some of Kelly’s and Aaliyah’s entourages revealed some of the details of the NDA, which reportedly came after Aaliyah’s father was incensed by the marriage.
Longtime friend and former bodyguard Gem Pratt told the Surviving team that Aaliyah’s family signed a contract with Kelly that promised they would not press charges against him for the illegal marriage after the annulment if Kelly promised to sell them the rights to his first three albums. During last year’s federal trial a jury found Kelly guilty on three counts of child pornography and three counts of enticing a minor to engage in sexual activity; Aaliyah was referred to as Jane Doe #1 at that trial.
“Her dad [Michael Haughton] didn’t want her anywhere near him,” Pratt said in the series about wanting to put distance between Kelly, who was 27 at at the time of the marriage, and Aaliyah, whose debut album, Age Ain’t Nothing But a Number — released when she was 14 — was produced and mostly written by Kelly. The stories of Kelly and Aaliyah’s secret marriage were rumored at the time, but the final episodes of the Lifetimes series put the details of the aftermath into sharper focus.
They include allegations about members of Kelly’s inner circle allegedly looking the other way at Kelly’s abuse of women girls and young men over decades, with Pratt saying that “He [Kelly] couldn’t do this by himself… it’s clear as day there were enablers.” Variety noted that the Aaliyah NDA came up during Kelly’s 2022 New York trial, though it did not receive widespread media coverage at the time; Chicago reporter Jim DeRogatis originally broke the news of the NDA, telling the New York Times Popcast podcast in 2018 that the agreement was a “harrowing document… A non-disclosure agreement on both her part and Kelly’s, vowing not to pursue further legal claims for physical abuse. So, it wasn’t just an underage sexual relationship, he hit her, allegedly, according to that court document.”
A lawyer for Kelly had not returned Billboard‘s request for comment about the NDA at press time and Kelly has maintained his innocence and is appealing the convictions.
In Sept. 2021, Kelly was found guilty in a New York trial of nine counts, including racketeering and 14 underlying acts including sexual exploitation of a child, kidnapping, bribery and sex trafficking charges, as well as eight counts of violating the sex trafficking law known as the Mann Act. In June 2022, Kelly, 55, was sentenced to 30 years in prison; the singer is still facing additional sentencing in Chicago as well as pending felony sex crime charges in Minnesota.
The final chapters of producer/director Dream Hampton’s Surviving series also included new allegations of Kelly’s sexual abuse from a survivor named Ebonié Doyle, who claimed she was raped by Kelly just days after his marriage to Aaliyah. Doyle said she was 16 when Kelly’s limo pulled up on her after one of his shows, setting off a relationship that resulted in her mother kicking Doyle out of the house when she discovered it.
After moving in with Kelly, Doyle said she became subject to Kelly’s “controlling” ways, which included forcing her to sit in a specific sexual position for hours until her posture was to his liking. At the time there were whispers about the singer’s relationship with the underage Aaliyah — Doyle noticed she and the singer were similar in stature and appearance — and said at one point she found a sex tape featuring Kelly and Aaliyah. When Kelly found out that she’d seen the tape, Doyle said he pushed her down a flight of stairs.
A record 159 billion music tracks were streamed in the United Kingdom last year, up 8.2% on 2021 and more than double the volume of audio streams registered five years ago — and more than 40 times bigger than a decade ago — according to year-end figures from labels trade body BPI.
In 2017, just over 68 billion music tracks were streamed in the U.K. That number soared to 159.3 billion in 2022 when an average of more than three billion audio streams were listened to on music streaming platforms like Spotify and Apple Music every week (the numbers don’t include video streams on YouTube or other video streaming platforms).
BPI reports that it now takes an average of 1.3 million audio streams to break into the U.K.’s official Top 40 singles chart and a combined seven million audio and video streams to score a number one.
Across digital and physical formats, the equivalent of 166 million albums were streamed or purchased last year, up 4.3% on the previous 12 months. Contributing to the rise in music consumption was the ongoing resurgence of vinyl, which shows no signs of slowing.
Sales of vinyl LPs climbed 2.9% year-on-year in the U.K. in 2022 to 5.5 million units — marking a 15th consecutive year of growth for the once considered dead format and the highest level of vinyl purchases in the country since 1990, when …But Seriously by Phil Collins was the year’s biggest-selling studio album.
Vinyl now represents just under one third (31.7%) of all physical music sales in the U.K., while CD sales fell 19.3% year-on-year to 11.6 million units and cassettes climbed 5.2% to 195,000 units. The CD’s share of the U.K. physical market now stands at about 67%, while tapes account for 1.1%, up from 0.9% in 2021.
Overall, streaming now accounts for just over 86% of all music sales in the U.K., up from 83.1% in 2021. That leaves physical formats with 10.4%, digital albums at 2.2% and track equivalent albums with 1.2% of all sales.
Five years ago, streaming accounted for just over 50% of the British market. In line with the year-on-year increase in music streaming, digital download sales fell 18.9% year-on-year to 3.7 million in 2022.
The U.K. is the world’s third biggest recorded music market behind the U.S. and Japan with sales of just over $1.8 billion in trade value, according to IFPI’s 2022 Global Music Report.
BPI’s preliminary year-end report, published Wednesday (Jan. 4), doesn’t include financial sales data. Instead, it uses Official Charts Company data to measure U.K. music consumption in terms of volume. The London-based organization will publish its full year-end report, including recorded music revenues, later this year. Another British trade body, the Entertainment Retailers Association (ERA), is due to report on annual music retail spending later this month.
For the first time since year-end charts were introduced more than 50 years ago, British artists accounted for the top 10 biggest-selling singles in the U.K. last year (either as the lead or as a featured artist), led by Harry Styles’ “As It Was,” which topped the U.K. singles chart for 10 consecutive weeks (as well as 15 weeks atop the Billboard Hot 100) and was streamed more than 180 million times in the United Kingdom.
Hit singles by Ed Sheeran, Cat Burns, Glass Animals, Lost Frequencies & Calum Scott, LF System, Sam Fender made up the rest of the top 10, joined by Kate Bush, whose 1985 track “Running Up That Hill” spent three weeks at number one following its high-profile Stranger Things synch and was streamed 124 million times in the U.K.
Styles also landed the year’s best-selling album with his third studio set Harry’s House. He is the first artist to have both the U.K.’s top single and top album since Lewis Capaldi in 2019. Sheeran’s = (Equals) and Taylor Swift’s Midnights were the year’s second and third best-selling albums, respectively, with Midnights the only album to achieve more than 200,000 chart-eligible sales in a single week. More than 60,000 of those first week sales were vinyl purchases, says BPI.
Last year was also a strong year for independent artists and labels in the U.K. Independent labels grew their share of the U.K. music market for a fifth consecutive year to account for 28.6% of album or their equivalent purchases across streaming and physical, up from 26.9% in 2021. Nine independently released LPs topped the U.K. albums chart in 2022 including records by The 1975, Central Cee, Fontaines D.C. and Wet Leg.
In a statement, BPI chair Yolanda Brown said the success of homegrown talent in 2022 was down to a “compelling mix” of musical creativity and artistry, coupled with the “the ever-expanding opportunities afforded by streaming” and the support of record labels.
Round Hill Music Royalty Partners has acquired the royalty income stream of Steve Lillywhite, one of the premier rock producers of the last 45 years, in a deal that includes his share of royalties from such albums as U2’s October and War; Dave Matthews Band’s Under the Table and Dreaming and Crash; and The Rolling Stones‘ Dirty Work. Terms of the deal were not disclosed.
Additional recordings on which Lillywhite served as a producer or worked are covered by the deal, including music by Phish, Peter Gabriel, Morrissey, Talking Heads, Counting Crows, Siouxsie and the Banshees and The Psychedelic Furs.
“As someone who grew up idolizing the bands and albums Steve Lillywhite produced, it is an honor to partner with him on this exciting transaction,” Round Hill Music CEO Josh Gruss said in a statement. “Steve’s catalog includes royalties to some of the most sought-after songs and albums of all time. We are thrilled to have reached this milestone transaction.”
For his part, Lillywhite added in a statement that the deal brings his catalog under “a kindred spirit [Gruss], who is a pioneer in the music royalty business and the ideal partner for me and my family as I look to my next steps.”
According to the announcement on the transaction, Lillywhite has produced or contributed to more than 500 records in his more than four-decade career. During that time, he won the Grammy for Producer of The Year in 2006 for U2’s How to Dismantle an Atomic Bomb, which also won the Grammy for Album of the Year and Best Rock Album. He also won Grammys as one of the engineers/mixers listed on U2’s “Beautiful Day” and “Walk On,” which won Record of the Year in 2001 and 2002, respectively.
Other acts Lillywhite has produced or worked with during his career — and whose music is part of the acquisition — include XTC, The Pogues, Big Country, Joan Armatrading, Sinead O’Connor, Marshall Crenshaw, Crowded House, The Killers and Chris Cornell.
The Lillywhite deal adds to Round Hill’s overall investment portfolio, which has now taken in more than $200 million in investments in more than 40 acquisitions, according to the company.
BRISBANE, Australia — It’s closing time for Sanity, the once-great Australian music retail specialist which confirmed it would close all its bricks-and-mortar stores in the coming months.
In a statement issued Wednesday (Jan. 4), Sanity announced plans to close its remaining 50 stores by the end of April 2023, in line with the lease expiry of each outlet.
It’s a sad end to a music and entertainment chain which, like so many brands in the business of racking physical soundcarriers, has been left behind as consumers move to streaming platforms.
“With our customer shifting to digital for their visual and music content consumption, and with diminishing physical content available to sell to our customer, it has made it impossible to continue with our physical stores,” explains Sanity CEO and owner Ray Itaoui.
Despite the “challenging and ever evolving entertainment landscape,” the Sanity business has “prospered and remained successful for many years, quite an achievement in the fast-changing retail space,” Itaoui adds.
Founded by retail guru Brett Blundy, Sanity began life in 1980 with just one store. The retailer grew to become Australia’s leading music and retail chain, a status which has later challenged by JB Hi-Fi.
With Blundy at the helm, his Brazin company entered the U.K. in the early 2000s with the purchase of 77 Our Price branded stores from Virgin Group. The experiment ended in 2003 when Brazin sold its 118 Sanity Entertainment U.K. stores to an investment firm for an estimated £12 million ($16.67 million).
A consortium led by Itaoui acquired the business from Brett Blundy Retail Capital (BBRC) in 2009, when the Sanity chain boasted 238 stores across Australia, including Sanity and the domestic branches of U.K. High Street brands Virgin and HMV.
In the late 2000s, Sanity launched what it claimed was Australia’s first online music subscription service, LoadIt, at a time when the business had an estimated 23%-25% share of Australia’s physical music retail market. LoadIt shut down in early 2009.
Digital platforms, and streaming, in particular, is how Australians consume music in the 2020s.
The recorded music market in these parts expanded by 4.4% to A$565.8 million ($421 million) in 2021, for the third successive year of growth, according to trade body ARIA. Subscription services, contributed $377 million ($281 million) that year, up 4.1% from A$317 million ($236 million) in 2020.
Sanity’s online business will continue to operate, and the team is currently working to dispatch all over-the-counter orders, including pre-orders.
“There is so much to be proud of,” adds Itaoui. The Sanity brand “became synonymous with the go-to place to get anything that mattered in the world of music: from vinyl, to CDs and DVDs, hardware, accessories, and of course face to face advice on everything musical.”
Former Atlantic Records employee Dorothy Carvello lost her bid for a seat on Warner Music Group’s board of directors last month after failing to comply with certain requirements in the company’s bylaws, spokespeople for Carvello and the record label said on Tuesday (Jan. 3).
Under a new rule passed by the U.S. Securities and Exchange Commission last year that makes it easier for minority shareholders to wage campaigns for board seats, Carvello sought to nominate herself for a seat on WMG’s board, to be voted on at the next shareholder meeting. The activist and author, who alleged in her memoir, Anything for a Hit: An A&R Woman’s Story of Surviving the Music Industry, that she was subjected to sexual abuse and misconduct while working at Atlantic from 1987 to 1990, plans to run again next year, according to her spokesperson.
Carvello’s odds of being elected by WMG investors to a seat on the company’s board were slim because a sizeable chunk of the record label is owned by WMG vice-chair Leonard Blavatnik, the Financial Times reported earlier on Tuesday. Still, Carvello’s novel attempt could set the stage for future bids by activists aiming to bring attention to causes not often discussed in the staid corporate arenas of annual shareholder meetings.
“While this is an unfortunate attempt by the corporation to block an important mission, she will continue to seek to have her name placed on the ballot next year,” a spokesperson for Dorothy Carvello wrote in an email.
Carvello submitted her nomination notice to WMG in early December, but it failed to meet certain requirements in the company’s bylaws, including that Carvello be a registered shareholder, a spokesperson for WMG wrote in a statement. Because Carvello bought her WMG shares through the online brokerage Robinhood, the brokerage’s name was on the shares, not Carvello’s.
WMG said it gave Carvello additional time to resolve the issues but the documents ultimately did not fulfill company requirements.
“We value the input of all shareholders, and anyone desiring to nominate director candidates must satisfy the standard requirements of WMG’s Bylaws, including being a registered shareholder,” WMG said in the statement.
Requiring that investors be registered shareholders to submit proposals or board nominations at annual meetings is a common corporate rule. However, it presents a complication for retail investors who most frequently purchase stocks through brokerages.
Carvello has gained attention in recent months for a letter sent by her lawyer to WMG board members requesting records relating to the company’s investigations into previously-reported sexual misconduct claims and royalties accounting at the label. And last month, Carvello filed a lawsuit against Atlantic Records and the estate of its late co-founder Ahmet Ertegun, along with WMG and two former Atlantic executives, alleging she was “horrifically sexually assaulted” by Ertegun and Morris and that Atlantic, WMG and Jason Flom (whom the suit says was an Atlantic vp at the time) enabled the abuse.
In its statement, WMG said its board and management “have made significant enhancements to our policies and procedures and take any allegations of misconduct seriously and are consistently working toward eliminating all forms of discrimination and harassment.”
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 special New Year’s newsletter, looking back at the biggest legal stories from 2022, the top stories from over the holidays, and what to watch in 2023.A quick programming note: Starting immediately, the email version of the Legal Beat newsletter is now free. All current readers will continue to get the newsletter directly into their inbox every Tuesday, but now anyone else can also sign up HERE to receive a weekly recap of every big story from the world of music law.
Year In Review: 2022’s Top Legal Stories
Some of the most important music industry stories of 2022 were legal stories, so we put together a handy year-end guideto catch you up on all the big developments.As always, copyright cases dominated the list. Taylor Swift finally escaped a case over “Shake It Off,” Ed Sheeran won a big trial over “Shape of You (but faces another one soon over “Thinking Out Loud”) and Katy Perry made important case law when she defeated a case over “Dark Horse.”Cardi B had a big year all by herself. She won a $4 million defamation verdict against a bomb-throwing YouTuber, then beat back a multimillion lawsuit claiming she Photoshopped a random guy onto the “raunchy” cover of a mixtape. Oh, and she also resolved a long-standing criminal case in New York by taking a misdemeanor plea deal.But arguably the most important story of the year was the use of rap lyrics in criminal trials.Billboard did a deep-dive in March, detailing how the practice had persisted for years despite longstanding criticism that it unfairly sways juries and threatens artistic expression — and that was before we knew what the year had in store. In May, hip-hop superstars Young Thug and Gunna were hit with a sweeping indictment that quoted heavily from their lyrics and then left to sit in jail for months, bringing unprecedented new attention to the issue. Atlanta prosecutors offered no apologies for the music-heavy charges, but in September, lawmakers in California enacted landmark legislation that would sharply restrict the practice in that state, creating a blueprint that other jurisdictions might follow.
Top stories to watch in 2023…
RAP ON TRIAL – A big issue from 2022 figures to take center stage again in 2023. Jury selection in the case against Young Thug and other YSL members (though not Gunna, who pleaded out in December) will kick off next week in Atlanta, setting the stage for a blockbuster trial that could last many months. And after coming up just short in 2022, lawmakers in New York will again try to pass legislation that could limit how prosecutors in that state use rap music to win convictions.COPYRIGHT CONTINUUM – After a year full of big copyright cases, 2023 could be even more jam-packed. Dua Lipa will try to evade two separate infringement lawsuits over her smash hit “Levitating,” while Ed Sheeran will face a jury trial over whether his “Thinking Out Loud” infringed Marvin Gaye‘s iconic “Let’s Get It On.” And don’t forget the big class actions against the labels over termination rights, the looming Supreme Court ruling over Andy Warhol’s image of Prince or the upcoming trial in a case against Post Malone.DR. LUKE V. KESHA – After nearly nine years of litigation, a trial is finally set for July in Dr. Luke’s defamation lawsuit against Kesha over her bombshell rape accusations against the producer. A trial had previously been scheduled to start in February, but it cannot take place until New York’s highest court decides two pending appeals dealing with big issues — big for both the case and for media law generally.
What you missed over the holiday week…
CARDI WINS AGAIN – A federal judge refused to overturn Cardi B’s courtroom victory in a lawsuit filed by Kevin Brophy, a man who was unwittingly Photoshopped to look like he was performing oral sex on the superstar on the cover of her debut mixtape. Two months after jurors cleared Cardi of any wrongdoing, the judge ruled that he would not “second-guess” the verdict.MEGAN HEADED TO TRIAL – A judge sided with Megan Thee Stallion in an early skirmish in her legal war with record label 1501 Certified Entertainment, refusing to grant the company a quick victory and ordering the case to instead be decided by a jury. 1501 had argued that the judge himself could decide whether her 2021 release Something for Thee Hotties counted as an “album” under her record deal, but her lawyers said she must be “allowed her day in court.” STEVEN TYLER ABUSE CASE – Aerosmith singer Steven Tyler was hit with a lawsuit accusing him of sexually assaulting a minor in the 1970s, claiming he convinced her parents to sign over custody and forced her to get an abortion. The case was filed by Julia Holcomb, who says she was the underage girl that Tyler repeatedly referenced in his racy 2011 memoir, in which he said he was “so in love I almost took a teen bride.”
NFTs had a wild 2022. January began with euphoric highs and a record $4.8 billion traded on OpenSea. By contrast, December ended the year with a hangover — volumes down by 95% with just $283 million traded in the month.
Still, the crypto winter hasn’t deterred musicians from embracing Web3. December saw an uptick in music NFT activity thanks to legacy artists Armin van Buuren and Styles P, as well as high-profile drops from crypto-native musicians like 3LAU and Daniel Allan. The first “billion club” NFT was released, unlocking streaming royalties in a track with more than a billion Spotify plays. Meanwhile, the independent scene continued to flourish with a seventh-straight month of rising volume on Sound.xyz – the largest platform for independent musicians.
Across the 10 biggest music NFT projects tracked by Billboard in December, sales volume was up 28% in ETH terms (751 ETH) and 23% in dollar terms ($949,781) from November. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in December 2022.
1/ Styles P – “The Farmacy Fantoms”Monthly trading volume: 205 ETH ($249,280 at month-end conversion rate)Primary sales: 170 ETHSecondary sales: 35 ETHDrop date: Nov. 28
The Farmacy Fantoms is a music NFT project by rapper Styles P. The collection of 6,666 animated ghost characters come with different visual traits and one of ten different tracks. In the future, holders will also get access to events and discounts on Styles P brand products.
View the collection on OpenSea.
2/ Armin van Buuren – “Armin’s All-Access (AAA)”Monthly trading volume: $210,120Primary sales: $189,448Secondary sales: 17 ETH ($20,672)Drop date: Dec. 13
Superstar DJ Armin van Buuren launched an all-access pass in December, granting NFT holders entry into a Web3 fan club community. The NFT unlocks an exclusive section of the DJ’s Discord server, as well as access to unreleased tracks, studio livestreams and exclusive events. Each NFT comes with music by the Dutch producer and 10 variations of digital artwork by Rik Oostenbroek. The duo sold 952 passes in December, at $199 each.
View the collection on OpenSea.
3/ Reo Cragun x Daniel Allan – “Criteria EP”Monthly trading volume: 138.67 ETH ($168,622)Primary sales: 94.247 ETHSecondary sales: 44.324 ETHDrop date: Dec. 15
Two of the biggest names in the independent music NFT scene teamed up to end the year with a bang. Criteria is an 8-track EP fusing electronic production from Allan and hip hop vocals from Cragun – who previously collaborated on Flume’s “Quits” EP. In December, the duo released 2,500 NFTs with a unique rarity structure. The rarest track, “Criteria,” has just 25 editions making it significantly more valuable than the most common track, “Supercharged” with 1,000 editions. “Supercharged” has a floor price of 0.056 ETH ($68) on secondary markets while the rare “Criteria” has a floor price of 3 ETH ($3,648).
Criteria was the largest ever drop on music NFT platform Sound.xyz, and despite the broader bear market in crypto, the drop sold out in approximately an hour. The collection was heavily supported by the leading music NFTs collectors, or “whales,” — many purchased more than 100 each.
View the collection on OpenSea.
4/ Violetta Zironi – “Moonshot” / “Gypsy Heart”Monthly trading volume: 59 ETH ($71,744)Primary sales: 40 ETHSecondary sales: 19 ETHDrop date: April 2022
Violetta Zironi is establishing herself as one of the most consistent independent artists in the space, appearing in this top 10 for four of the last seven months. Her debut “Moonshot” collection — featuring artwork from her father, Disney animator Giuseppe Zironi — continues to generate strong sales on OpenSea with 19.24 ETH traded in December.
Her new collection Gypsy Heart is now being rolled out to existing fans and holders through an early access mint pass. Zironi sold 500 mint passes in December (out of a total 5,000), generating 40 ETH. The project will go live to the public in January.
View the collection on OpenSea.
5/ 3LAU – “Too Late for Love”Monthly trading volume: $58,839 (48.3 ETH)Primary sales: $58,839Secondary sales: N/ADrop date: Dec. 14
Electronic producer and DJ 3LAU set records back in 2021 with an $11.6 million NFT sale. Since then, he launched the Web3 music platform Royal, allowing fans to own a percentage of streaming royalties in tracks by The Chainsmokers, Diplo and others.
In December, 3LAU released his first single of the year, and his first NFT drop since 2021, “Too Late for Love.” Released via his platform Royal, the producer sold 330 gold tokens, each representing 0.1165% of streaming royalties in the track, and three diamond tokens, each granting 3.8488% of streaming royalties as well as backstage access to 3LAU events for life.
6/ Offset and Metro Boomin – “Rick Flare Drip”Monthly trading volume: 42 ETH ($51,072)Primary sales: 39 ETHSecondary sales: 3 ETHDrop date: Dec. 1
The first ever NFT from Spotify’s “Billions Club.” “Rick Flare Drip” has more than 1 billion streams on Spotify, and now fans can own a small piece of the future streaming revenue. The royalties were unlocked through a partnership with Bijan Amir — one of the producers on the track. “This is my first foray into Web3 and crypto,” said Amir. “I wanted to do something meaningful when I did. I love the idea of fans getting a share of my rights, instead of me selling a share of my masters to some investor.” The NFTs were sold via Anotherblock, a Web3 platform that sells streaming royalties in some of the world’s biggest tracks.
View the collection on OpenSea.
7/ KINGSHIP – “Key Cards”Monthly trading volume: 25 ETH ($30,400)Primary sales (in Dec): N/ASecondary sales: 25 ETHDrop date: May 2022
The Bored Ape supergroup secured its seventh-straight month in this top 10 thanks to consistent sales on secondary markets like OpenSea. In December, the group began teasing video footage from the studio where producers Hit-Boy and James Fauntleroy are currently working on the band’s music.
View the collection on OpenSea.
8/ Rae Isla – “Rocks”Monthly trading volume: 23 ETH ($24,320)Primary sales (in Dec): 20 ETHSecondary sales: 3 ETHDrop date: Nov. 28
Independent singer-songwriter Rae Isla was featured in November after selling the first 600 NFTs from her “Rocks” project — a collection of 1,000 NFTs made up of four tracks, each with different rarities and artwork released through Nifty Music — a music NFT accelerator. Isla returned to the top ten in December after selling the remaining 400 and capturing a further 3 ETH in secondary sales on OpenSea.
View the collection on OpenSea.
9/ WVRPS by WarpsoundMonthly trading volume: 20 ETH ($24,320)Primary sales (in Dec): N/ASecondary sales: 20 ETHDrop date: January 2022
WVRPSound is the biggest music NFT project ever in terms of trading volume. Since launching in January last year, the collection of AI-generated music and animated characters have earned more than 6,000 ETH in volume (approximately $7.3 million). In December, the project gave away an album of AI music to holders which triggered a fresh wave of trading activity.
WVRPSound also announced a tool for artists to create multitrack NFT albums. Now, an entire album can be minted as an NFT with interactive buttons to skip tracks. It sounds simple, but this hasn’t been done before at scale. Until now the only other example was an early experiment by an indie band called Talk Time. WRVPSound made the technology open source for anyone to use.
View the collection on OpenSea.
10/ Sammy Arriaga – “Pixelated”Monthly trading volume: 17 ETH ($20,672)Primary sales (in Dec): N/ASecondary sales: 17 ETHDrop date: June 2022
Bringing country to crypto, Sammy Arriaga is a singer-songwriter that launched an NFT project called “Pixelated” back in June. Based around 12 different versions of one song, Pixelated is a collection of 4,000 NFTs, each with a unique pixelated profile picture which Arriaga’s fans use across their social media accounts. The Pixelated project has enjoyed steady volume on secondary markets like OpenSea since the launch, but volume picked up in November and December.
View the collection on OpenSea.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between Dec. 1 – Dec. 31, 2022. Conversion rates from crypto to US dollars were calculated on Dec. 31.
Disclosure: The author owns music NFTs from Reo Cragun and Daniel Allan, however, the above list is based purely on sales data.