Legal
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Cassie has issued a statement in response to the outpouring of support she’s received following the release of the video of her then-boyfriend Diddy physically assaulting her at a Los Angeles hotel in 2016.
The “Me & U” singer hadn’t spoken out since CNN posted the footage on May 17, with only her attorneys issuing statements. That changed on Thursday morning (May 23) when she addressed the situation and thanked those who have supported her.
“Thank you for all of the love and support from my family, friends, strangers and those have yet to meet. The outpouring of love has created a place for my younger self to settle and feel safe now, but this is only the beginning. Domestic Violence is THE issue. It broke me down to someone I never thought I would become. With a lot of hard work, I am better today, but I will always be recovering from my past,” she wrote on Instagram, making no mention of Diddy by name.
“Thank you to everyone that has taken the time to take this matter seriously. My only ask is that EVERYONE open your heart to believing victims the first time. It takes a lot of heart to tell the truth out of a situation that you were powerless in.”
Cassie continued: “I offer my hand to those that are still living in fear. Reach out to your people, don’t cut them off. No one should carry this weight alone. This healing journey is never ending, but this support means everything to me. Thank you. Love Always, Cassie.”
Kelly Rowland, Chloe Bailey, Lala Anthony, Taraji P. Henson and more showered Cassie with love and commended her bravery in her IG comment section.
In the footage dated March 5, 2016, and released by CNN, Diddy is seen striking Cassie at an elevator bank of a Los Angeles hotel and dragging her through the hallway after kicking her.
“The gut-wrenching video has only further confirmed the disturbing and predatory behavior of Mr. Combs,” said Ventura’s attorney, Douglas Wigdor, in a statement to Billboard at the time. “Words cannot express the courage and fortitude that Ms. Ventura has shown in coming forward to bring this to light.”
Diddy issued an apology on Sunday (May 17), saying his actions in the video were “inexcusable,” and added he was “disgusted” with his behavior.
“It’s so difficult to reflect on the darkest times in your life, but sometimes you got to do that,” Diddy said in the video posted to Instagram. “I was f–ked up. I mean, I hit rock bottom. But I make no excuses. My behavior on that video is inexcusable. I take full responsibility for my actions in that video. I’m disgusted. I was disgusted then when I did it, I’m disgusted now.”
Cassie and Diddy met in 2005 and dated on-and-off for a decade before splitting for good in 2018. Ventura filed a lawsuit against Diddy in Manhattan federal court in November 2023, alleging rape, sexual assault, physical abuse and more.
The two parties settled the dispute less than 24 hours later. Terms of the agreement were not disclosed. “I have decided to resolve this matter amicably on terms that I have some level of control,” Ventura said in a statement issued by her attorney at the time. “I want to thank my family, fans and lawyers for their unwavering support.”
With additional sexual assault lawsuits piling up, Combs has continued to deny all allegations made against him. “Let me be absolutely clear: I did not do any of the awful things being alleged,” he said in a statement on Dec. 6. “I will fight for my name, my family and for the truth.”
Read Cassie’s statement in full below.
A Department of Justice lawsuit against Live Nation for violating U.S. antitrust laws is imminent and could be filed as soon as Thursday (May 23), a source with knowledge of the DOJ’s plans tells Billboard.
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The lawsuit is rumored to charge that Live Nation has a monopoly on event ticketing through Ticketmaster and that it illegally uses its monopoly power to grow its business and stifle competition. The DOJ has been investigating Live Nation for more than two years. With that investigation now wrapped, company president Joe Berchtold recently said he was that he was hopeful his company would avoid a legal showdown with the DOJ’s top antitrust lawyer, Jonathan Kanter.
“These are always serious discussions. We wouldn’t get to this point if they didn’t have concerns, but the good news is we’re still talking and they’ve said they have an open mind,” Berchtold told attendees at the J.P. Morgan Global Technology, Media and Communications conference in Boston on Tuesday (May 21).
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“Without getting into the real details of the conversation, I think it’s fair to say I continue to believe that we fundamentally have business practices that are fully defensible,” Berchtold added, before continuing: “We’re also open to figuring out common ground in order to get this settled and moved on. But we don’t know exactly what they want at this point still.”
Live Nation declined to comment for this story.
The Department of Justice’s case is believed to be centered around Ticketmaster’s use of exclusive ticketing contracts when signing up venues for its ticketing services. Typically, Ticketmaster pays venues an advance on the revenue that it generates from the fees it charges consumers as part of the ticket-buying process. The longer the contract, the larger the advance Ticketmaster can pay out.
DOJ officials don’t like the practice, arguing that it locks out new companies from competing in the ticketing space. Ticketmaster officials, however, argue that they are open to working with non-exclusive contracts — both the Greek Theatre in Hollywood and Red Rocks in Denver are open facilities where promoters use the ticketing provider of their choice — but that venues often rely on exclusive deals to meet their capital needs.
While Ticketmaster holds more exclusive ticketing contracts than any other company, it isn’t the only one to make use of them: Every major competitor pays upfront advances in exchange for exclusive ticketing agreements with venues and sports teams.
That includes SeatGeek, which reportedly paid $10 million in 2021 for exclusive rights to ticket events at the Barclays Center in Brooklyn for a seven-year term. Two years into the agreement, Billboard reported at the time, Barclays Center and BSE Global chief executive Sam Zussman threatened to publicize SeatGeek’s tech problems and breaches of contract if it didn’t immediately agree to terminate the deal.
SeatGeek eventually agreed to wind down its relationship with Barclays Center and was replaced by Ticketmaster. DOJ officials reportedly scrutinized the incident during its investigation of Live Nation.
In the wake of a falling out between RBD and its ex-manager and business partner Guillermo Rosas — a split made public in January when Billboard reported that the two had parted ways — the Mexican band has shared an official statement addressing the ongoing dispute.
In a statement issued Wednesday (May 22), RBD responded to previous claims made by Rosas and his company, T6H, to People En Español that there was “no financial mismanagement” tied to the band’s ultra-successful Soy Rebelde Tour. Hitting back at that characterization, RBD members Anahí, Christopher Von Uckermann, Dulce María, Christian Chávez and Maite Perroni claim that there were in fact “significant irregularities” revealed in a forensic accounting investigation led by Critin Cooperman, alleging that nearly $1 million remains unaccounted for after T6H began receiving funds related to the tour in December 2022.
According to the official statement issued by RBD’s lawyers and shared with Billboard, T6H and Citrin Cooperman — a services firm that acted as a business manager for the tour and also conducted the financial audit — were the “only entities responsible for the tour payments.” None of RBD’s members “had access to manage the money or make payments,” the band claims.
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Furthermore, the band says, T6H has “hindered the process” by not signing “key” documents necessary for the resolution of payments and the tour, which marked RBD’s grand return to touring after splitting in 2008.
Billboard reached out to T6H for comment but did not hear back by press time.
“Given the considerable amount of money involved and the discrepancies found, all our projects are currently on hold. We have had to pause this shared dream with you, including a possible continuation of the tour,” the statement continues. “Our goal has always been to resolve these discrepancies professionally. We remain committed to cooperating with all parties involved to achieve a fair and transparent resolution. Our integrity and the trust of our fans are paramount, and we will not rest until these matters fully resolve.”
In December, RBD wrapped its massive world tour, which, as of Nov. 30, had grossed $197.1 million since launching in August. Rosas also worked with the band as a concert promoter from 2006 to 2008.
Under a new business model designed for RBD’s comeback tour, the five members and Rosas were deemed equal partners in a new joint venture. The deal had the band splitting all new revenue, including for music, with Rosas, who in 2020 helped clear the rights to the group’s catalog. He also brought Live Nation on board as the promoter for the reunion tour and CAA for global representation of the band.
Apple has launched a legal challenge against the 1.8 billion euro ($1.95 billion) fine assessed by the European Commission for breaking competition laws and unfairly favoring its own music streaming service over rivals including Spotify.
According to court records, the U.S. tech giant filed an appeal with the EU’s Luxembourg-based General Court earlier this month.
Details of what is contained in the legal action, listed as: “Apple and Apple Distribution International v Commission,” are not yet publicly available. Representatives of Apple and the European Commission did not respond to requests to comment.
Apple had previously said it would appeal the EU’s fine, which was handed down in March following a long-running investigation triggered by complaints from Swedish streaming service Spotify.
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At the time of the ruling, the European Commission’s Margrethe Vestager said Apple had “abused its dominant position” for almost a decade by restricting rival music streaming apps from informing consumers about alternative, cheaper music services available outside of the App Store.
As a result, many users paid “significantly higher prices for music streaming subscriptions” because of the high fee imposed by Apple on developers, which was then passed on to users, the commission said.
Apple has always strongly denied those claims, arguing that EU investigators had failed “to uncover any credible evidence of consumer harm.” The commission’s decision “ignores the realities of a market that is thriving, competitive, and growing fast,” the tech company said in a statement two months ago.
The nearly $2 billion fine was issued as part of an ongoing EU-wide effort to rein in the global dominance of big tech companies through large financial penalties and regulatory measures.
In March, just a few days after Apple received its penalty notice, new EU rules came into force governing how the largest online platforms operate in Europe as part of the Digital Markets Act (DMA).
The DMA requires the six tech giants designated as “gatekeepers” by the European Commission — Apple, Google parent company Alphabet, Amazon, TikTok-owner ByteDance, Meta and Microsoft — to comply with a raft of provisions, including not favoring in-house services at the expense of third-party providers.
The laws are enforceable by fines of up to 20% of total worldwide turnover (a.k.a. gross revenue) or, in extreme cases, the “last resort option” of forced divestments and the break-up of businesses.
In response, companies like Apple have been overhauling how they operate in the 27-member EU bloc, allowing European users to download rival app stores and lowering the fees charged to developers for purchases made through the App Store.
However, Apple’s plans to charge “high volume” services with over 1 million users a €0.50 ($0.54) “core technology fee” per download, per year, for using alternatives to the App Store has been heavily criticized by a number of European businesses, including Spotify and Deezer.
On March 25, the EU announced that it was investigating Apple, along with Meta and Alphabet, for potential breaches and non-compliance with the DMA’s terms.
Apple’s legal challenge against the commission’s $1.95 billion fine opens yet another battlefront with EU regulators. The tech company has previously had some success in the General Court — the European Union‘s second-highest court, which hears cases brought by companies against the commission.
In 2020, EU judges overturned a previous ruling by the commission that Apple had underpaid 13 billion euros in taxes to the Irish government. That case subsequently went to the European Court of Justice and is still slowly making its way through the legal process.
Apple’s latest court fight could be just as longwinded and take several years before any ruling is made by the General Court, which would also be open to appeal.
The latest escalation in the power struggle between HYBE and Min Hee-jin, the CEO of its subsidiary label ADOR, has arrived in the form of legal action from a separate label under the Korean conglomerate.
In a statement released Wednesday (May 22) local time in Seoul, HYBE label BELIFT LAB announced it is taking legal action against Min for defamation over her claims that the BELIFT team behind girl group ILLIT plagiarized her and ADOR’s work with NewJeans. The label is accusing Min of “obstruction of business and defamation,” according to the statement.
The news is just the latest development in a saga that has seen HYBE file a police report accusing Min of a “breach of trust” via an alleged plan to take over management control of ADOR, which was followed by an emotionally charged press conference on April 25 during which Min refuted the allegations.
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One of Min’s most widely discussed claims from the press conference was that BELIFT LAB “copied all the formulas that we had with NewJeans” for the recently launched ILLIT, including musical concept, fashion collaborations and more. As reported by the Korea JoongAng Daily, Min said the members of ILLIT are “innocent” and “it’s the adults that have sinned.”
Since that claim, online fighting between fans and social-media users on both sides of the conflict has brought various claims against multiple parties within the HYBE LABELS system, from artists to executives.
Further in its May 22 statement, BELIFT LAB declared that “Min’s accusations of plagiarism are not true” and that the label is “vigorously pursuing all necessary legal avenues to clarify the facts,” noting that the claims are Min’s opinions. The agency, which also houses boy band ENHYPEN, touched on the five members of ILLIT, noting that Yunah, Minju, Moka, Wonhee and Iroha “have been facing unjustified malicious attacks, ridicule, and slander,” adding that they “strongly urge these defamatory actions, ill-willed slander, the spreading of misinformation, and any form of personal attacks to stop.”
The news comes amid a major week for HYBE, as the company prepares for the highly anticipated releases of both Right Place, Wrong Person — the latest solo album from BTS‘ RM released under BIGHIT MUSIC — and How Sweet, a two-track single from NewJeans under ADOR, both out on Friday (May 24).
See the official English-language version of BELIFT LAB’s statement, as provided to Billboard by HYBE:
Hello,This is BELIFT LAB.
Today, May 22, our company has formally submitted a letter of complaint against Hee Jin Min for obstruction of business and defamation. This action follows Min’s unfounded and erroneous allegations against ILLIT, a group of artists represented by BELIFT LAB.
We would like to make it clear that Min’s accusations of plagiarism are not true. We have provided conclusive evidence to the appropriate judicial authority to refute them. We are committed to vigorously pursuing all necessary legal avenues to clarify the facts, regardless of the time it will take.
It is important to note that claims of plagiarism should not be determined by an individual’s biased opinions but should instead be assessed through established legal standards and processes. It is regrettable that our artists and employees are being subjected to unwarranted speculation and misinformation, impacting their hard work and integrity.
Additionally, members of ILLIT have been facing unjustified malicious attacks, ridicule, and slander, in spite of the fact that the members are unrelated to the accusations at hand. We strongly urge these defamatory actions, ill-willed slander, the spreading of misinformation, and any form of personal attacks to stop.
BELIFT LAB will spare no effort to protect our artists and employees.
Thank you.
Beyoncé, Sony Music and others are facing a copyright lawsuit over her chart-topping hit “Break My Soul,” filed by a New Orleans group that says she sampled from a Big Easy rapper who had illegally lifted lyrics from their earlier song.
In a complaint filed Wednesday (May 22) in Louisiana federal court, members of Da Showstoppaz accuse Beyoncé (Beyoncé Knowles Carter) of infringing their 2002 song “Release A Wiggle” on “Break My Soul,” which spent two weeks atop the Billboard Hot 100 in 2022.
Rather than stealing their material directly, the group alleges that Beyoncé infringed their copyrights by legally sampling the 2014 song “Explode” by the New Orleans rapper Big Freedia. That track, they say, illegally borrowed several key lyrics from their song.
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“While Mrs. Carter … and others have received many accolades and substantial profits … Da Showstoppaz’s have received nothing—no acknowledgment, no credit, no remuneration of any kind,” the group’s attorneys wrote, also naming Big Freedia (Freddie Ross) as a defendant.
“Explode” was one of several high-profile samples on “Break My Soul,” which also heavily pulled from Robin S.‘s house song “Show Me Love.” After the release of the song, Big Freedia thanked “Queen Beyoncé” and said she had been “honored to be a part of this special moment.”
At the center of the new dispute is the phrase “release yo wiggle” and several related variants, which Da Showstoppaz call “unique phrases” that they coined in their song. They say Big Freedia — a well-known rapper in New Orleans’ bounce music scene — infringed their copyrights by using similar phrases in “Explode.”
“The infringing phrase ‘release yo’ wiggle’ and several other substantially similar phrases are featured prominently in the song and evenly spread out across Explode’s two-minute and forty-seven second runtime,” the group’s lawyers wrote. “Any reasonable person listening to ‘Release A Wiggle’ and ‘Explode’ would conclude that the songs are substantially similar.”
Such allegations could face long odds in court. Copyright law typically does not protect short, simple phrases, and a court could potentially dismiss the case on the grounds that Big Freedia was free to use such lyrics even if The Showstoppaz used them first.
But the group’s lawyers aren’t concerned, saying they “have a copyright to their unique and distinctive lyrics” that was clearly infringed by Big Freedia: “The coined term and phrase ‘release a/yo wiggle’ has now become closely synonymous with Big Freedia, thereby contributing to Big Freedia’s fame. However, Big Fredia did not compose or write the phrase, and Big Freedia never credited Da Showstoppaz as the source.”
According to the lawsuit, Da Showstoppaz first learned about Big Freedia’s song when they heard “Break My Soul.” They say they notified Beyoncé and others of the alleged infringement infringement last month, but that she has refused to take a license.
Reps for Beyoncé and Sony Music did not immediately return a request for comment on the allegations.
An Earth, Wind & Fire tribute act will pay the legendary R&B group $750,000 in damages for using its trademarked name in ways that a federal judge called “deceptive and misleading.”
The payment, announced in a court filing Tuesday, will effectively end a year-long lawsuit in which the band alleged that the tribute act — “Earth, Wind & Fire Legacy Reunion” – infringed the trademark rights to the famous name by suggesting it was the real thing.
Earlier this year, the federal judge overseeing the case sided with Earth, Wind & Fire, ruling that the tribute act’s conduct had been “deceptive and misleading.” A trial had been scheduled to figure out how much Legacy Reunion would need to pay, but the two sides reached an undisclosed settlement on that question last week.
In Tuesday’s filing, the judge disclosed the total that Legacy Reunion had agreed to pay – $750,000, plus interest — a rare step following settlements, which are typically kept private. Neither side immediately returned requests for comment.
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Earth, Wind & Fire has continued to tour since founder Maurice White died in 2016, led by longtime members Philip Bailey, Ralph Johnson and White’s brother, Verdine White. The band operates under a license from an entity called Earth Wind & Fire IP, a holding company controlled by Maurice White’s sons that formally owns the rights to the name.
Last year, that company filed the current lawsuit, accusing Legacy Reunion of trying to trick consumers into thinking it was the real Earth, Wind & Fire. Though it called itself a “Reunion,” the lawsuit said the tribute band contained only a few “side musicians” who had briefly played with Earth, Wind & Fire many years ago.
“Defendants did this to benefit from the commercial magnetism and immense goodwill the public has for plaintiff’s ‘Earth, Wind & Fire’ marks and logos, thereby misleading consumers and selling more tickets at higher prices,” the group’s lawyers wrote at the time.
Tribute acts — groups that exclusively cover the music of a particular band — are legally allowed to operate, and they often adopt names that allude to the original. But they must make clear that they are only a tribute band, and they can get into legal hot water if they make it appear that they are affiliated with or endorsed by the original.
Ruling on the case last month, Judge Federico A. Moreno said the evidence pointed “overwhelmingly” in the band’s favor. In particular, the judge cited angry social media posts and emails from fans who attended the “Reunion” shows because they thought it was the original band — proof of the kind of “actual confusion” that’s crucial evidence in a trademark lawsuit.
“It is not a far cry to think that an average consumer looking for an Earth, Wind & Fire concert would believe that they could acquire that experience from either plaintiff or defendants,” the judge wrote.
Following Tuesday’s order, the only remaining issue in the case is an injuction permanently banning Legacy Reunion from infringing the name. That issue will be subject to future rulings clarifying exactly what it will cover.
Sean “Diddy” Combs has been accused of sexual assault in a new lawsuit filed by a woman who claims the hip-hop mogul sexually assaulted her in a recording studio bathroom in 2003.
According to the complaint, which was filed in U.S. District Court in New York by attorneys Michelle Caiola and Jonathan Goldhirsch, Crystal McKinney claims she met Combs at a Men’s Fashion Week dinner in Manhattan on the invite of a fashion designer she knew. While attending the dinner, during which she alleges that Combs came onto her “in a sexually suggestive manner,” she says he invited her to hang out at his recording studio.
After arriving at the studio, where McKinney says several other men were present, she claims she was given alcohol and a marijuana joint that she later came to believe was laced “with a narcotic or other intoxicating substance.” She says Combs then led her to a bathroom, where he began kissing her without her consent before shoving her head in his crotch and forcing her to perform oral sex over her protests.
McKinney, who was then working as a professional model, claims that she later “awakened in shock” to find herself in a taxi heading back to the apartment of the designer who had invited her to the dinner. At this point, she “realized that she had been sexually assaulted by Combs,” the complaint reads. The lawsuit adds that following the alleged assault, McKinney’s “modeling opportunities quickly began to dwindle and then evaporated entirely” after Combs allegedly “blackballed” her in the industry. After falling into “a tailspin of anxiety and depression,” she claims she attempted suicide in 2004 and later fell into drug and alcohol addiction to cope with the trauma of the alleged assault.
The new lawsuit was filed under the NYC Gender Motivated Violence Act, which created a two-year lookback window beginning in March 2023 that allows survivors of gender-motivated violence to sue their abusers for alleged incidents that occurred outside the statute of limitations.
Also named as defendants in the lawsuit are Combs’ label Bad Boy Records, its parent company Universal Music Group and Combs’ clothing company Sean John Clothing, all of which McKinney claims “enabled” the alleged assault by “actively maintaining and employing Combs in a position of power” despite the fact that they allegedly “knew or should have known that Combs posed a risk of sexual assault.”
McKinney is asking for damages for mental and emotional injury, distress, pain and suffering and injury to her reputation as well as punitive damages, among other relief.
Representatives for Combs, Bad Boy Entertainment, Sean John Clothing and Universal Music Group did not immediately respond to Billboard‘s requests for comment.
Tuesday’s complaint marks the sixth sexual misconduct lawsuit to have been filed against Combs over the past several months. The torrent of lawsuits was kicked off by a November 2023 complaint filed by his former girlfriend Cassie Ventura, who alleged repeated abuse by the mogul over the course of more than a decade.
Though Ventura’s lawsuit was settled just one day later, a 2016 security video published by CNN on Friday (May 17) showed Combs physically assaulting Ventura in a hotel hallway. Though Combs denied all of Ventura’s initial allegations, in the wake of the video’s release he issued an apology calling his behavior in the clip “inexcusable.” L.A. District Attorney George Gascón later released a statement saying that Combs could not be prosecuted over the assault due to the statute of limitations.
Combs has strongly denied all allegations of sexual assault made against him. On Dec. 6, he released a statement that read: “Let me be absolutely clear: I did not do any of the awful things being alleged. I will fight for my name, my family and for the truth.”
In November, Combs stepped down as chairman of his digital media company Revolt before reportedly selling his stake in the company in March. Also in March, federal agents conducted raids of Combs’ L.A. and Miami homes “in connection” with a federal sex trafficking investigation, according to CNN.
Podcast and music streaming company LiveOne is being sued for allegedly “openly and illegally operating a commercial office, business event center, professional podcast interview studio, and music recording studio” out of a 6,000-square-foot mansion in Beverly Hills, according to a complaint filed May 10 by the property’s next-door neighbors.
Entertainment attorney Michael Kibler and his wife Ann Kibler allege LiveOne has been a “nuisance” since it moved to take over the lease for the house in 2022, leading to “noise at all hours of the day and night, increased foot and car traffic associated with commercial operations, and parking overflow, from the day-to-day commercial activity at the residence,” according to the lawsuit, which was filed by Kibler’s law partner John Fowler.
The house is located in the famed Beverly Hills Flats neighborhood, which has long struggled to balance the privacy and safety needs of its wealthy residents with the hustle and bustle of West Hollywood and Beverly Hills’ glitzy Golden Triangle corridor.
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According to the complaint, the Beverly Hills home now being used by LiveOne had been privately held and occupied by a long-time owner who passed away in 2021. The property, which includes, a pool, a swimming lap lane and a guest house, was then purchased by Siamak Khakshooy and Tanaz Koshki for $6.9 million in October 2021 and rented the following December to The Revels Group, which manages artists including rapper G-Eazy.
That’s when the problems for the Kibler family began, according to the lawsuit. The Revels Group used the space as its “creative compound,” the lawsuit reads, operating music studios on the property and promoting “all-night music industry events hosted by professional DJs” on a “nightclub-quality sound system in the backyard.” After receiving multiple complaints about the house, Beverly Hills’ Code Enforcement department launched an investigation in September 2022 and ordered the company to “permanently terminate all operations,” which led to The Revels Group not renewing its lease. After The Revels Group moved out in December 2022, LiveOne moved in around March 2023.
Since taking over the property, LiveOne “has operated its music and entertainment company by engaging in recording studio activities, hosting a pre-Grammy night party on February 3, 2024, and holding other music entertainment events,” the lawsuit reads.
The Kiblers have hired private investigators to surveil the house and issue lengthy reports identifying LiveOne staffers as they enter and exit the property, even running license plate checks on cars parked near the house to determine the identities of the drivers, according to the lawsuit. Besides the occasional late-night party, the Kibler’s biggest complaint is the “large quantities of trash overflowing from the City trash and recycling bins in the alley behind The LiveOne House.”
The Kiblers are suing LiveOne and the property’s owners for violating local zoning laws, charging both with public and private nuisance, as well as infliction of emotional distress. The Kiblers are asking a judge to order LiveOne to cease all business at the house and pay a $10,000 fine for each day it operates at the house.
Billboard reached out to LiveOne for comment but did not receive a response.
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: Spotify faces a lawsuit over allegations that it “unlawfully” chose to reduce royalty payments to publishers and songwriters; Earth, Wind & Fire reaches a settlement over how much it’s owed in damages by an unauthorized tribute band; Elvis Presley’s granddaughter sues to protect Graceland from a “fraudulent” foreclosure; and much more.
THE BIG STORY: Spotify Taken To Court Over Royalties
Weeks after Billboard estimated that Spotify would pay roughly $150 million less to songwriters and publishers over the next year, the streaming giant is facing a legal battle over the move.In a lawsuit filed last week, the Mechanical Licensing Collective (MLC) claimed Spotify had “unilaterally and unlawfully” chosen to cut its royalty payments nearly in half by “erroneously recharacterizing” the nature of its streaming services to secure a lower rate.“The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for songwriters and music publishers,” the MLC wrote. “If unchecked, the impact on songwriters and music publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.”At issue in the lawsuit is Spotify’s recent addition of audiobooks to its premium subscription service. The streamer believes that because of the new offering, it’s now entitled to pay a discounted “bundled” royalty rate under federal law. But the MLC says Spotify’s interpretation is legally incorrect and represents a “clear breach” of its requirements under the law.This is the second lawsuit of the past six months for the MLC — an entity created by Congress in 2018 to collect royalties under the Music Modernization Act. After the MLC filed a similar case against Pandora in February, that streamer argued that the group was supposed to operate as a “neutral intermediary” and was “not authorized to play judge and jury” or pursue “legal frolics.”For the full breakdown of the new case against Spotify — including industry reactions and access to the full complaint filed in court — go read Kristin Robinson’s entire story here.
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Other top stories this week…
TRADEMARK TRIAL AVERTED – Earth, Wind & Fire reached a settlement with a tribute act that used the R&B group’s name without permission, avoiding a looming trial over how much the unauthorized group would have to pay in damages. The agreement came months after a federal judge ruled that the tribute act — “Earth, Wind & Fire Legacy Reunion” — had infringed the band’s trademarks.LIVE NATION CASE EXPLAINED – With an antitrust lawsuit against Live Nation from the U.S. Department of Justice expected soon, Billboard‘s Dave Brooks dove deep — breaking down the particulars of the looming case, explaining how it might affect Live Nation and recounting recent federal efforts to crack down on anti-competitive practices at tech giants like Google and Apple.COURTHOUSE ROCK – Elvis Presley’s granddaughter Riley Keough filed a lawsuit aimed at blocking a “fraudulent” foreclosure sale of the late singer’s historic Memphis home Graceland. Keough’s lawyers say the sale foreclosure was triggered by phony claims that her late mother, Lisa Marie Presley, borrowed $3.8 million and used Elvis’ famed mansion as collateral.UMG DROPPED FROM DIDDY CASE – Universal Music Group (UMG) and CEO Lucian Grainge were dismissed from a lawsuit claiming they “aided and abetted” Sean “Diddy” Combs in his alleged sexual abuse — a move that came after the lawyer who filed the case admitted there had been “no legal basis for the claims.” The sudden reversal came as UMG’s lawyers argued that the accusations were so “offensively false” that they planned to take the unusual step of seeking legal penalties directly against the accuser’s lawyer.SAMPLE SETTLEMENT – Kanye West reached a settlement with the estate of Donna Summer to resolve a copyright lawsuit that accused him of “shamelessly” using her 1977 hit “I Feel Love” without permission in his song “Good (Don’t Die).” The case, filed in February, claimed that West “arrogantly and unilaterally” used her music even though he had been explicitly refused a license.NAME GAMES – Members of the 1980s new wave band The Plimsouls won a legal ruling against the group’s guitarist over the trademark rights to the band’s name. The case was the music industry’s latest battle over the names of classic rock groups, including Journey, Stone Temple Pilots, Jefferson Starship, the Rascals, the Ebonys, The Commodores and The Platters.