Business
Page: 7
Nelly is asking a federal judge to punish the lawyers who recently sued him over his 2000 debut album Country Grammar, arguing the case is “objectively frivolous” and should “never have been brought in the first place.”
The lawsuit, filed last year, claims Nelly (Cornell Haynes) has failed to pay his former St. Lunatics bandmate Ali for his work on the album. But in a new motion Thursday (Jan. 16), Nelly’s attorneys say those decades-old allegations are so “baseless” that Ali and his lawyers must face legal penalties for filing them.
“Plaintiff and his counsel should be sanctioned in the full amount … that Haynes has been forced to incur in defending this action,” the rapper’s lawyer Ken Freundlich writes. “That is because plaintiff’s claims should never have been brought in the first place.”
Trending on Billboard
Freundlich says that if Ali’s attorneys (Gail M. Walton and Precious Felder Gates) had done “even the barest factual investigation and legal research,” they would have found fatal flaws in the lawsuit — most notably that it was filed years after the statute of limitations had expired. Instead, he says they doubled down after such shortcomings were exposed.
“Plaintiff and his counsel’s failure to withdraw their fatally flawed claims, and their insistence on pressing forward with frivolous assertions and legal arguments require a substantial sanction,” Nelly’s lawyers write. “[This is] not only to compensate Haynes for the substantial legal fees and expenses he has been forced to incur in defending this action, but also to deter plaintiff and others who would flout the Copyright Act’s rules and clear undisputed court precedent.”
In a response statement to Billboard on Thursday, Felder Gates said Ali’s legal team would “vehemently defend” against Nelly’s motion and would continue to pursue their client’s “undeniable right to be properly compensated” for his alleged work on Country Grammar: “It is both unethical and unlawful for artists and their corporate partners to exploit the creative work of writers, deceiving them out of their rightful credits and fair compensation.”
Nelly rose to fame in the 1990s as a member of St. Lunatics, a hip-hop group also composed of St. Louis high school friends Ali (Ali Jones), Murphy Lee (Tohri Harper), Kyjuan (Robert Kyjuan) and City Spud (Lavell Webb). With the June 2000 release of Country Grammar — which spent 5 weeks atop the Billboard 200 — Nelly broke away into a solo career that later reached superstar heights with his 2002 chart-topping singles “Hot in Herre” and “Dilemma.”
In a copyright lawsuit filed in September in Manhattan federal court, all four of those bandmates accused Nelly of cheating them out of compensation for contributions they allegedly made to Country Grammar. They claimed that he had “manipulated” them into falsely thinking they’d be paid, then never made good on the promises.
But a month later, the lawsuit took a strange turn: Nelly’s lawyers filed a letter warning that Lee, Kyjuan and Spud had never actually wanted to sue Nelly and that they had not given legal authorization to the lawyers who filed the lawsuit to include them as plaintiffs.
“They are hereby demanding you remove their names forthwith,” Nelly’s lawyers wrote in a letter to Walton. “Failure to do so will cause them to explore any and all legal remedies available to them.”
In November, Ali’s attorneys filed an updated version of the lawsuit listing only him as a client and vowed to fight on: “While others may have chosen to withdraw, his dedication to his artistic legacy and his rights as a creator remains unwavering,” Felder Gates said in a statement to Billboard at the time.
But in Thursday’s motion, Nelly’s attorneys argue that the case has deeper problems than simply improper plaintiffs.
They say the lawsuit was filed many years after the Copyright Act’s three-year statute of limitations had expired since Nelly had clearly “repudiated” Ali’s demand for payment years before he filed his case. And they say that when Ali’s attorneys refiled the case under just his name, they tried to sneakily remove certain dates to “hide” that fatal flaw.
“Plaintiff omits the dates of repudiation in his [amended lawsuit],” Freundlich says. “This ruse does not save the claim from being time-barred. In fact, all it does is elucidate how Plaintiff and his counsel are engaging in sanctionable conduct.”
As a penalty, Nelly’s lawyers want the judge to order Ali and his attorneys to repay all legal fees and other costs that the star has incurred defending the case. Even for just a few months of copyright litigation, that figure could reach thousands of dollars when top law firms are involved in a case.
Sony Music Entertainment acquired Czech Republic-based record label Supraphon, furthering its expansion in Central Europe. The Supraphon roster includes recordings from artists such as Karel Gott, Lucie Bílá, Marek Ztracený, Škwor, Olympic, Hana Zagorová and Václav Neckář. A press release states that the Czech music market notched recorded music revenue of $84.1 million in 2023, with streaming boasting 60.1% of the total market with a volume of $50.5 million — an 18% increase from the prior year. The release adds that seven out of the top 10 songs and albums in the country in 2023 were put out by Czech artists. Libor Holeček will continue leading Supraphon as MD, Martin Kudla will remain as executive director and Iva Milerová, who was previously chairwoman of board of directors, will continue on in an advisory role.
Warner Music Italy and Warner Chappell Music Italy signed a deal to acquire the catalog of DWA Records, a leading Italo Disco label co-founded in 1989 by singer-songwriters and producers Roberto Zanetti and Francesco Bontempi. The agreement also encompasses the catalog of Extravaganza, DWA’s music publishing business. DWA’s catalog includes more than 250 masters including “The Rhythm of the Night” performed by Corona and written by Bontempi; “Happy” and “Uh La La” by Alexia; and “Baila” performed by Zucchero and written by Zanetti.
Trending on Billboard
MENA streaming service Anghami announced a new round of funding from OSN Group of up to $55 million, with a $12 million initial investment in a convertible note program. OSN and Anghami struck an initial partnership in April 2024, merging OSN+’s video streaming capabilities and 18,000 hours of content with Anghami’s portfolio of 100 million songs and podcasts. The companies claim video streaming subscribers grew 41% between April and October 2024. The new funds will allow the platforms to expand their content library, enhance the user experience using new technologies and strengthen their presence in the MENA region. It will additionally be used to implement innovations including AI-driven personalization.
Symphonic Distribution signed a global distribution deal with Taiwanese indie label Kafka By the Sea, whose roster includes Taiwanese rock band KST and indie-pop band Bubble Tea and Cigarettes. The first release under the pact was Sherry Z’s debut album Time.
Decentralized music community and discovery platform Audius struck a multi-territory licensing agreement with International Copyright Enterprise (ICE). The new deal establishes a pathway for more than 330,000 rights holders to receive royalties when their music is used on Audius in sub-Saharan Africa and Asia Pacific, among other territories.
U.K.-based live entertainment company ATG Entertainment acquired SOM Produce, a theater producer, operator and distributor based in Spain. Financial terms were not disclosed for the deal. SOM Produce, headquartered in Madrid, is a leading global producer and distributor of musicals and plays in the Spanish language. It manages five theaters in the center of Madrid — including Nuevo Teatro Alcalá, Teatro Rialto, Teatro Nuevo Apolo, Teatro Calderón and Teatro Amaya — and has produced more than 20 shows, including Mamma Mia!, The Book of Mormon, West Side Story, Grease, Chicago and Cabaret. ATG is majority owned by Providence Equity Partners.
Classical music label Pentatone signed a licensing partnership with Dutch promotion and distribution platform Collabhouse, which launched a pre-cleared artist music library in November. Through the deal, Pentatone will provide its entire public domain catalog to a broader community of creators, allowing composers, filmmakers, advertisers and more to work with musical works by composers including Beethoven, Bach, Tchaikovsky, Mozart, Vivaldi and more, “all interpreted by the most renowned artists,” according to a press release.
The Peoria Civic Center Authority and Prairie Home Alliance secured a naming-rights agreement for the 2,200-capacity theater within Peoria Civic Center for seven years. The venue will now be known as the Prairie Home Alliance Theater. Prairie Home Alliance is a locally owned and operated group of 10 home improvement companies across central Illinois. This is the first naming rights deal for the theater in its 42-year history.
Danish microphone producer DPA Microphones acquired the majority share of Vienna-based audio products company Austrian Audio. According to a press release, DPA is a leading manufacturer within several miniature microphone categories while Austrian Audio is strong in the large diaphragm microphone market. “Together, the brands provide a broader product range for discerning sound engineers in industries like broadcast, musical, theatre, live events and recording studios,” states a press release announcing the deal. “By joining forces, the brands will design and develop sophisticated, professional audio solutions that meet the evolving demands within the acoustical and digital fields, all while prioritizing the user experience.”
Spotify announced that it has canceled all of its Grammy Week events, including its annual Best New Artist and Songwriter of the Year parties, in light of the devastating L.A. wildfires.
In a blog post on Thursday (Jan. 16), Joe Hadley, Spotify’s global head of music partnerships & audience, wrote that funds from the canceled events will be redirected “to support efforts to reach local fans and charitable organizations.”
“It’s also important to remember the effect this has on the production industry, so we are ensuring our vendors are compensated despite this shift,” Hadley wrote. “While this year will look and feel different, our commitment to emerging artists is unwavering.”
Trending on Billboard
Hadley notes that Spotify’s charitable efforts will include Spotify-funded donations to MusiCares and FIREAID, the benefit concert slated for Jan. 30 at the Intuit Dome that will donate proceeds to rebuilding L.A. infrastructure, supporting displaced families and advancing fire prevention technologies and strategies. The company will also be joining with GoFundMe “to support and spotlight fundraisers dedicated to helping members of the artist and music community who’ve been affected by the fires.”
Additionally, Spotify will be “dedicating on-platform promotion and offering pro bono ad inventory to drive awareness of causes supporting the relief and artist and creator support via studio time” at the company’s L.A. headquarters located in the Arts District.
“The summation of these efforts means we are committing a combined total of $5 million,” Hadley wrote.
Thursday’s announcement follows previous Grammy Week cancellation announcements by all three major labels and various other companies and organizations following the horrific blazes, which displaced tens of thousands of Angelenos and killed at least 25. The remaining Grammy Week events, including Clive Davis’ annual gala, have been reframed as fundraisers for wildfire victims. The Grammys themselves are still slated to move ahead on Feb. 2.
You can read Hadley’s letter in full below.
The devastation of the past week is hard to put into words. I’ve lived in Southern California for 20 years, and my heart aches for our community. Los Angeles is home to hundreds of Spotify employees, millions of music fans, and countless individuals whose lives have been upended by this unprecedented crisis.
We’ve spent the last few days considering how to best show up for LA, the music industry, and the creative community. Ultimately, we’ve decided that the most impactful approach is canceling all our Grammy Week events, including our annual Best New Artist party, and redirecting funds to support efforts to reach local fans and charitable organizations. It’s also important to remember the effect this has on the production industry, so we are ensuring our vendors are compensated despite this shift. While this year will look and feel different, our commitment to emerging artists is unwavering.
These efforts include Spotify-funded donations to MusiCares, an organization that provides a safety net of critical assistance in times of need, and FireAid, a benefit concert on January 30 with proceeds centered on rebuilding infrastructure, supporting displaced families, and advancing fire prevention technologies. We’re also joining forces with GoFundMe to support and spotlight fundraisers dedicated to helping members of the artist and music community who’ve been affected by the fires. In addition to these donations, we’re dedicating on-platform promotion and offering pro bono ad inventory to drive awareness of causes supporting the relief and artist and creator support via studio time at our LA office in the Arts District. The summation of these efforts means we are committing a combined total of $5 million.
Thanks to all of our partners for your patience as we decided how best to support. We’ve got each other’s backs here in L.A. – let’s keep showing up for each other.
Joe
The Songwriters of North America (SONA) Foundation has relaunched its Songwriter Fund to provide emergency relief for songwriters and composers impacted by the wildfires in Los Angeles. To qualify, songwriters should visit the organization’s website and provide a few examples that demonstrate professional-level work as a musician, prove they were based in and around the […]
Shaboozey’s “A Bar Song (Tipsy)” was the most streamed, downloaded and highest grossing song of 2024 in the United States, according to a Billboard review of Luminate’s annual report published on Wednesday (Jan. 15).
The anthemic hip-hop-infused country song generated $6.59 million from digital song sales and on-demand audio streams in the United States for the year spanning from Dec. 29, 2023 to Jan. 2, 2025, having spent a historic 19 weeks in the No. 1 spot on Billboard’s Hot 100.
Trending on Billboard
The top 10 most digitally consumed songs of 2024 as identified by Luminate generated a combined $53.4 million from on-demand audio streams, such as when the song is played on Spotify, and digital song sales, like when a digital download is purchased through Apple’s music store.
Another country crossover hit, Post Malone’s “I Had Some Help” featuring Morgan Wallen, took the No. 2 spot on Luminate’s list, and generated $5.76 million from sales and on-demand audio streams, while Benson Boone’s “Beautiful Things” came in third on that list, and generated $5.65 million. Those royalties are paid out to an artist’s record label and music publisher; Billboard was not able to determine the artists’ share of those earnings.
The remainder of the top 10 most digitally consumed songs were Teddy Swims’ “Lose Control” which earned $5.57 million; Kendrick Lamar’s “Not Like Us,” which earned $5.63 million; Sabrina Carpenter’s “Espresso,” which earned $5.2 million; Zach Bryan’s 2023 release featuring Kacey Musgraves, “I Remember Everything,” which generated $5.03 million; Tommy Richman’s “Million Dollar Baby,” which earned $4.99 million; Billie Eilish’s “BIRDS OF A FEATHER,” which earned $4.53 million; and Hozier’s “Too Sweet,” which generated $4.39 million.
Lamar’s “Not Like Us” ranked fifth, behind Swims’ “Lose Control,” on the list of most streamed and downloaded songs. However, “Not Like Us” generated slightly more money than “Lose Control” — “Not Like Us” netted $5.63 million compared to $5.57 million for “Lose Control” — because it was streamed 37.7 million more times. While “Lose Control” had more digital downloads, and a single digital download pays out more than a single stream, digital sales for both songs only totaled 430,000.
As the music industry’s leading data provider, Luminate tracks consumption data from more than 500 retailers, streaming and radio companies, among others. This top 10 list from Luminate’s report focused on digital song sales and on-demand audio streams because around 90% of music consumption activity comes from digital formats in the U.S. Luminate stripped out video streams from this year’s chart because of a change in how one company provided video data in 2024.
These 10 songs made an additional $30.3 million from video streams, programmed streams, such as a play on satellite radio, and radio airplay spins in the U.S. Including that revenue, Shaboozey’s “A Bar Song” was still the top money-making hit with $10.74 million, but Teddy Swims’ “Lose Control” came in second with $10.22 million, largely because of its success on radio and programmed streams. The songs would have also made additional revenue from sales and streams around the world, metrics that are not included in Luminate’s ranking.
Some songs did particularly well on video. Lamar’s Drake diss track “Not Like Us” had more than 216 million on-demand video streams in the U.S. last year, which generated over $1 million from master recording and publishing rights, Billboard estimates.
Here is Luminate’s full list of the top 10 songs of 2024 ranked by sales and streaming-equivalent units based on on-demand audio streams with Billboard‘s estimates on how much money each song generated from those categories.
Artist manager Justin McIntosh has launched JTMC Entertainment, welcoming actress, singer and New York Times bestselling author Kristin Chenoweth to the roster. McIntosh will continue to work with singer, entertainer, author, actress and businesswoman Reba McEntire, whom he has represented since 2023. “2025 marks my 20-year anniversary of working in this business, and I am […]
Reservoir Media has acquired the publishing catalog of Lastrada Entertainment. Home to over 5,600 compositions, the family-run company publishes hits that span all genres from the 1960s to today, including songs recorded by Jim Croce, Glen Campbell, The Carpenters, Captain & Tennille, Neil Sedaka, Eminem, Dolly Parton, H.E.R., Leon Bridges, Notorious B.I.G., Eminem and more.
Lastrada Entertainment was founded in 1987 by Herb Moelis and has since been passed down to his children Stephen and Larry Moelis. As the company has grown over the last four decades, it has acquired evergreen hits like Jim Croce’s “Bad, Bad Leroy Brown” and “Time In A Bottle,” “Love Will Keep Us Together” by Captain & Tennille, “More Bounce To The Ounce” by Zapp, and The Whispers’ “And The Beat Goes On.”
Then, in the 1990s, the catalog was given new life when decade-defining rapper 2Pac sampled a Lastrada Entertainment song in his single “California Love.” Later, the catalog also benefitted from samples in “We Belong Together” by Mariah Carey, “Miami” by Will Smith and more.
Trending on Billboard
“We have long admired Lastrada and the incredible catalog that the Moelis family has curated over the years,” says Rell Lafargue, president and COO of Reservoir. “Stephen and Larry’s deep knowledge of the music and their dedication to innovative sampling and synchs have elevated this catalog to iconic status. We are honored that Reservoir is now the home to the songs of Lastrada, and we look forward to preserving the legacy the Moelis family has built and ensuring its continued success.”
Lastrada’s president of music publishing Stephen Moelis adds, “The Moelis family takes pride in the catalog of hits we were part of, and in the personal relationships we forged with our incredibly talented songwriters. Passing the creative torch to Reservoir is the natural next step to continue the work we started with our father 40 years ago, and we wish to thank Golnar Khosrowshahi, Rell Lafargue, and the entire Reservoir team as they become stewards of some of the great songs of all time.”
Pershing Square Holdings chief Bill Ackman won’t get his wish of a Universal Music Group (UMG) de-listing from the Euronext Amsterdam exchange, but the hedge fund king’s push for a UMG listing on a U.S. exchange will nevertheless come to fruition in 2025. UMG announced Wednesday (Jan. 15) that Pershing Square and some of its […]
ASCAP announced Wednesday (Jan. 15) that it will distribute $1 million in emergency relief to ASCAP songwriters or composers who have suffered the loss or damage of their primary residences or studios in the Los Angeles wildfires. The organization is also offering assistance to those who have been evacuated.
ASCAP will provide one-time stipends in the amount of $1,500 to ASCAP writer members in good standing as of Jan. 1, 2025, who do “not have a resignation notice pending.” The stipends will be awarded on a first-come, first-served basis while funds are available.
Please see the ASCAP website for more information or to apply for benefits. You can also check out our resource guide for music workers impacted by the fires here and find out how to help here.
“Our hearts go out to everyone impacted by the devastating Los Angeles fires. We are here to support our ASCAP members during troubled times, and we will ensure these funds reach ASCAP composers and songwriters in need,” said ASCAP CEO Elizabeth Matthews in a statement.
ASCAP president Paul Williams also wrote a message to members in need. His letter can be read below in full:
To my fellow ASCAP members,
My heart aches for the unimaginable loss and devastation that has struck our beloved city of Los Angeles. I want to say to all members and their families who have been impacted by the fires and are facing profound challenges, please take comfort that you are not alone. We are a community. As music creators, our community is built on a foundation of compassion, connection and a sense of purpose. That is our bedrock, where we always land, where we always begin.
Some of you have lost your homes, your studios, your instruments, those materials of your life which hold memories and meaning. What can never be lost is the spirit of this community and the enduring bond we share with each other. The outpouring of kindness, support, concern and generosity we have witnessed throughout this crisis is beyond inspiring. Proof, yet again, of an abundant supply of love.
As a community of songwriters, composers and music publishers, ASCAP has always harnessed our collective strength for the greater good. That is why ASCAP is setting up an emergency fund in the amount of $1 million for our members who have suffered from loss and damage to their homes and studios.
If you need help, please visit www.ascap.com/lafirerelief for more info.
Wishing you much love, hope and strength,
Paul
Universal Music Group (UMG) is firing back at Drake’s lawsuit accusing the music giant of defaming him by promoting Kendrick Lamar’s diss track “Not Like Us,” calling the case “illogical” and accusing Drake of trying to “weaponize the legal process.”
In a strongly-worded statement issued Wednesday afternoon (Jan. 15), UMG flatly denied the allegations in Drake’s lawsuit — filed earlier in the day in New York federal court — and sharply criticized its superstar artist for bringing it.
“Not only are these claims untrue, but the notion that we would seek to harm the reputation of any artist—let alone Drake—is illogical,” the company wrote. “We have invested massively in his music and our employees around the world have worked tirelessly for many years to help him achieve historic commercial and personal financial success.”
Trending on Billboard
The lawsuit claims that UMG knew that “inflammatory and shocking allegations” in Lamar’s scathing diss track were false, but chose to place “corporate greed over the safety and well-being of its artists.”
But in UMG’s response, the music giant said that Drake himself had often engaged in rap beefs featuring bombastic claims about his opponents — the very thing that he now claims is illegal.
“Throughout his career, Drake has intentionally and successfully used UMG to distribute his music and poetry to engage in conventionally outrageous back-and-forth ‘rap battles’ to express his feelings about other artists,” UMG wrote. “He now seeks to weaponize the legal process to silence an artist’s creative expression and to seek damages from UMG for distributing that artist’s music.”
Drake’s case repeatedly makes clear that he is not suing Lamar himself, and that he holds UMG responsible for releasing a song that it allegedly knew was defamatory.
In its statement, UMG denied that claim — and said it would defend Lamar or any other artist if they were hit with such a lawsuit.
“We have not and do not engage in defamation—against any individual,” UMG said in the statement. “At the same time, we will vigorously defend this litigation to protect our people and our reputation, as well as any artist who might directly or indirectly become a frivolous litigation target for having done nothing more than write a song.”
Drake and Lamar exchanged stinging diss tracks last year, culminating in Lamar’s knockout “Not Like Us” — a track that savagely slammed Drake as a “certified pedophile” and reached the top of the charts. In November, the star filed stunning legal petitions suggesting that he planned to sue UMG, claiming that the company had artificially boosted a song that contained defamatory statements about him.
Earlier on Wednesday, Drake made good on those threats — filing a federal lawsuit that claimed UMG had boosted a “false and malicious narrative” that the star rapper was a pedophile, severely harming his reputation and even putting his life in danger.
“UMG intentionally sought to turn Drake into a pariah, a target for harassment, or worse,” the star’s lawyers wrote in their complaint. “UMG did so not because it believes any of these false claims to be true, but instead because it would profit from damaging Drake’s reputation.”
The accusations — and Wednesday’s response statement — represent a remarkable rift between the world’s largest music company and one of its biggest stars. Drake has spent his entire career at UMG, first through signing a deal with Lil Wayne’s Young Money imprint that was distributed by Republic Records, then by signing directly to Republic.