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Pandora is firing back at a lawsuit filed by the Mechanical Licensing Collective (the MLC) that claims the company has failed to properly pay streaming royalties, calling the case a “gross overreach” based on a “legally incoherent position.”
The MLC — the group created by Congress in 2018 to collect streaming royalties — filed the lawsuit earlier this year, accusing Pandora (a unit of SiriusXM) of misclassifying the nature of its streaming service to avoid paying the kind of higher royalties owed by “interactive” platforms like Spotify.
But in its first response to the case filed on Tuesday (April 16), Pandora calls the MLC’s lawsuit a “wild overreach” that “distorts the Pandora experience” — and one filed by an entity that is not even legally empowered to bring such cases.
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“The MLC … was intended to be a neutral intermediary charged with collecting and distributing royalties under the blanket license,” Pandora writes. “It is not authorized to play judge and jury over a streaming service’s legal compliance, nor was it created … to pursue legal frolics and detours such as this one.”
Pandora’s lawyers also say the lawsuit is based on a “a legally incoherent position” that has never been raised by the music companies for whom the MLC is collecting royalties: “The MLC seems to think it knows something the entire music industry does not.”
A rep for the MLC did not immediately return a request for comment.
At the heart of the lawsuit against Pandora is the distinction between “interactive” platforms like Spotify or Apple Music, which allow users to pick their songs on demand, and “noninteractive” platforms that provide an experience more like radio. It’s a key dividing line since interactive and noninteractive services pay very different royalties under different systems.
Though Pandora offers a premium tier with on-demand functionality, it has long treated Pandora Free — the core radio-like product that fueled the company’s rise in the late 2000s — as a noninteractive service, since it largely serves users a mix of songs based on their preferences.
But in a February lawsuit, the MLC argued that Pandora Free had crossed the line into “interactive” status by offering so-called “Sponsored Premium Access” sessions, which allow users to briefly play specific songs in return for watching ads. As a result, the MLC argued that Pandora owed the same kind of royalties for Pandora Free as services like YouTube or Spotify pay.
“Pandora provides even greater interactive access and functionality than these other ad-supported interactive streaming services,” the MLC wrote. “Despite the interactive functionality of Pandora Free, Pandora has failed to report in full Pandora Free usage to The MLC.”
In Tuesday’s response, Pandora’s lawyers argued that the MLC’s lawsuit “badly distorts reality” by making a “blatant mischaracterization of Pandora’s offerings.”
In their telling, the disputed “Sponsored Premium Access” sessions are merely brief previews of the company’s on-demand tier with “strict caps” on usage — not a wholesale feature that would “transform” Pandora Free “into an interactive service like Spotify or Apple Music.”
What’s more, Pandora says that feature was explicitly negotiated with music companies, who have never once objected to it or argued that it required Pandora to “fundamentally change its approach to licensing.”
“The MLC apparently thinks it knows better than the entire music publishing industry,” Pandora wrote. “Not only is the MLC operating far outside its administrative bounds, but it is also completely wrong on the law.”
Speaking with Billboard on Tuesday, George White, senior vp of music licensing at SiriusXM and Pandora, echoed the claims made by Pandora in the legal response.
“The lawsuit is really a gross overreach, especially when you consider that Pandora is such a well-known and well-established non-interactive music streaming service,” White said. “There are no checks and balances on the MLC. We believe that’s something, as part of the MLC redesignation, that the Copyright Office really needs to consider.”
White was alluding to the Copyright Office’s ongoing “redesignation process” of the MLC — a five-year check-up required by Music Modernization Act to ensure that the organization is functioning effectively. The first-ever redesignation started in January and is set to wrap up later this year.
A year ago, Matt Najdowski, like many business managers for top artists, was routinely going over royalty statements when he discovered an unusual plunge in revenue.
For years, Pandora, the internet-radio streaming service, had paid 50% of song royalties to the artists through a collection agency called SoundExchange. But suddenly, artists signed to Universal Music Group were receiving a much lower percentage, similar to what they received from on-demand streaming services like Spotify or YouTube. And the payments were now arriving directly from UMG instead.
Najdowski researched further and learned UMG was able to change the way it reported Pandora revenue because Pandora itself had changed. In 2016, the streaming service began evolving from webcasting to a Spotify-style “search and play what you want” model. Because Pandora now offers an interactive service, rather than a non-interactive webcaster, it needed to make new deals with labels rather than relying on a government-mandated compulsory license at a standardized rate.
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As such, UMG and other labels were able to change the flow of royalties so they collected and paid them directly — rather than SoundExchange distributing to artists, as law mandates under these compulsory licenses. With UMG’s change in policy last year it became the first and only label so far, according to sources, to take advantage of this change. With that, the royalty splits for artists changed, too, from a 50% split through SoundExchange to whatever, often smaller, percentage their record deals dictated for on-demand streaming revenues. That’s significant as the world’s biggest record label contributed $135 million to SoundExchange as part of its Pandora share for artists, according to Billboard estimates based on financial reports and other public information.
“That specific royalty stream can range from a couple hundred dollars per month to a couple thousand. It can be a significant amount of money,” says Najdowski, royalty manager for Farris, Self & Moore. This change in accounting, he adds, “is more or less taking money out of [artist’s] pockets.”
Perhaps most notably, Najdowski discovered that the many UMG artists who are unrecouped – meaning they have yet to earn back the money the label spent on recording, marketing and other costs – were receiving a worrisome amount: zero. These acts were previously being paid directly by SoundExchange, so their unrecouped status with UMG was not an issue for these royalties. “A lot is being withheld, and it feels like a grab for money from the labels,” says Heather Gruber, royalty manager for Fineman West, a business-management firm that represents artists.
Although Pandora has struggled in recent years – monthly users have dropped from 81.5 million in 2014 to 46 million in 2023 – it remains a potent outlet for hitmakers such as SZA, Megan Thee Stallion and Lil Durk, as well as bubbling-under singles like contemporary-Christian singer-songwriter Lauren Daigle’s “These Are the Days.” Newer artists rely on the exposure, too, and Pandora royalties have provided crucial revenue while they absorb touring and merch expenses. “If you’re making millions of dollars, this isn’t going to have a big impact on you,” says Harold Papineau, associate lawyer for King, Holmes, Paterno and Soriano, which represents Metallica and others. “But if you’re living paycheck to paycheck, then this is a significant problem. Now you’ve lost money that you may have relied on to pay your bills.”
In a statement, a UMG representative responded by explaining the difference between interactive (like Spotify, YouTube and Apple Music) and non-interactive streaming services (like internet radio). For the former, recording royalties are “subject to direct negotiation between an individual rights owner and the service,” the rep said, adding that Pandora “has substantially changed its functionality such that it has evolved into an interactive service, where users can select tracks on demand.” In other words: The label has every right to make this change.
Still, UMG didn’t fully change the way it reported the royalties to artists until 2022, and it caught many business managers and music attorneys by surprise. “It kind of happened in the dead of night,” says Mike Merriman, a business manager for the firm PARR3 who represents DJ Alison Wonderland, singer 6lack and producer Louis Bell, among others. “It does create some ambiguity and lack of transparency.”
When the Pandora change first kicked in, business managers were confused about the streaming service’s identity. “We’re still running analysis on it,” says Erica Rosa, owner/vp of royalties and contract compliance at FBMM, a business management firm that represents top artists. “I’ve asked a lot of questions to attorneys and various industry figures: ‘How would you define Pandora? Would you consider it to be an interactive or non-interactive stream? I don’t know that anyone has given a clear definitive answer yet.”
Additional reporting by Glenn Peoples.
The Mechanical Licensing Collective (The MLC) has sued Pandora for allegedly failing to adequately pay and report its monthly royalties, including in its accounting for its ad-supported tier “Pandora Free” (also known as “radio” or “free Pandora”).
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In a lawsuit filed Monday (Feb. 12) in Nashville federal court, The MLC seeks to recover the royalties that Pandora allegedly owes them and all associated late fees. The MLC is particularly concerned with “unusually low royalties per stream” reported and paid out by Pandora, starting in 2021 which they say is due to the exclusion of substantial “Service Provider Revenue and TCC for Pandora Free.” (Total Content Cost or “TCC” refers to the amount paid by streaming services to record labels for the right to stream sound recordings. The TCC and Service Provider Revenue are essential to calculating the royalties due for this blanket license).
The MLC — which is tasked with administering the blanket mechanical license for musical works, created by the Music Modernization Act — also takes issue with Pandora’s lack of retroactive royalty accounting for 2021 and 2022.
In August 2023, the royalty rate for the license administered by The MLC for the years 2018-2022 was finally determined after a five year battle in which some streaming services fought to pay lower rates for music than the Copyright Royalty Board judges initially decided on. While awaiting the final rate determination, streamers, including Pandora, paid out the previous, lower royalty rate to the music business. Once the final determination was made, it set the rates higher than what the streaming services were paying previously. As a consequence, streamers were tasked to go back and retroactively pay the proper 2018-2022 rate for music.
The MLC says it “repeatedly” reminded Pandora to report its retroactive adjustments due for 2021 and 2022, and it set a deadline for Feb. 9, 2024, which it says Pandora did not reach. (The MLC did not open its doors until 2021, and thus the retroactive adjustments for 2018-2020 are not within its purview).
Pandora has made “repeated and significant underpayments of the royalties due,” says the MLC in its lawsuit.
The news comes just weeks after the MLC and its counterpart the Digital Licensee Coordinator (DLC) entered their first-ever re-designation process, a routine five year check-up to ensure the effectiveness and efficiency of the two organizations. The MLC has also made headlines recently for issuing its first-ever audit of streaming services. The organization is also being audited itself by Bridgeport Music, which represents George Clinton and Funkadelic.
Lately, the music business has been fighting back against what it feels are unfair or unpaid licensing rates. Universal Music Group recently pulled its catalog from TikTok, citing the app’s inability to pay “fair value” for music. Last summer, SoundExchange, which collects and distributes performance royalties for the digital transmission of sound recordings, sued SiriusXM, which owns Pandora, for an alleged $150 million in unpaid royalties, and the National Music Publishers Association (NMPA) sued Twitter for $250 million for “refusing to pay songwriters and music publishers.”
Representatives for Pandora and The MLC did not respond to Billboard’s request for comment at press time.
During his tenure at Google in the early 2000s, Shuman Ghosemajumder‘s official title was global head of product, trust and safety. But he also acquired a snazzier moniker, “click fraud czar,” thanks to his efforts to combat bad actors who try to fake online activity to inflate advertising payouts.
“It was very surprising to us, almost 20 years ago, when we saw organized crime getting involved with online fraud,” Ghosemajumder says. “Ever since then, I’m never surprised: The idea of cybercrime or online fraud coming from an individual hacker sitting in their bedroom hasn’t been the case for basically 30 years.”
Criminal interest in a different type of click fraud drew the attention of the music industry this week, when the Swedish paper Svenska Dagbladet published a piece alleging that the country’s gangs use streaming manipulation as a way to launder money earned via illicit activities. “Spotify has become an ATM for them,” an anonymous police investigator told the paper.
“That article appears to point to a really kind of ingenious way of laundering money,” says James Trusty, a former federal prosecutor who worked on cases involving both computer fraud and money laundering. “It seems to me to be a fairly invisible process right now, and that poses serious challenges to law enforcement.”
“It’s the usual chase,” he adds. “The robbers come up with something new, and the cops eventually catch up.”
In a statement to Svenska Dagbladet, a rep for Spotify told the paper that “manipulated streams are a challenge for the entire industry,” one that the platform “is working hard to combat” via “market leading” technology. On top of that, the rep said Spotify has discovered no evidence that it is being used as a money laundering tool.
If additional criminal activity is discovered on streaming platforms, could that bring new pressure to the music industry to address streaming fraud — something many believe is long overdue?
The article arrives at a time when executives from around the music industry are calling for better monitoring of the streaming ecosystem. “As an industry, we need to do more to harden the defenses of platforms and deter bad actors from using music streaming for criminal purposes,” Beatdapp co-CEOs Morgan Hayduk and Andrew Batey said in a statement. (Beatdapp makes fraud detection technology.)
Svenska Dagbladet‘s report is hardly the first time connections have been drawn between criminals and the music business. Industry history books are sprinkled with gangsters, especially in the earlier decades before it consolidated and became increasingly corporate. In one of the most infamous episodes, the longstanding practice of paying for airplay drew government scrutiny after a 1986 NBC report linked prominent radio promoters with members of the mafia.
But the resulting investigation ended up having little impact and ultimately fizzled out. In the book Hit Men, which catalogs this period, Fredric Dannen wrote that the lesson for the record business was that “the government is incapable of sending any major music industry figure to jail.” Paying for airplay continued unchecked for more than a decade.
The practice of paying for artificial streams has only recently drawn public criticism in the U.S. music industry. Streaming manipulation has the potential to distort market share calculations and steer money away from the hardworking artists who are not gaming the system. Both Universal Music Group CEO Lucian Grainge and Sony Music CEO Rob Stringer have expressed concern about fraud in calls with financial analysts this year.
“Once someone like Lucian Grainge makes a statement about it, it’s necessarily going to get more prominence,” says one streaming service executive who agreed to speak about manipulation on the condition of anonymity. “That’s not to say we weren’t dealing with it behind the scenes before Lucian was making statements. But now there is broader recognition of the scope of the problem and the impact that it has on revenues and royalties that should be, but have not been, paid through to legitimate artists.”
Potential connections between streaming manipulation and criminal elements were raised last year at a pair of music industry panels, first at South by Southwest and then at the Music Biz conference. Michael Pelczynski, who was then SoundCloud’s vp of strategy, participated in both discussions. “We were able to see signs of such activity” by collaborating with Pandora/SiriusXM and the cybersecurity company HUMAN, he says. “The benefit of creating a coalition with a third party was they could puzzle together certain patterns that we as individual platforms could not.”
Streamers try to work backwards from anomalies in the data, trawling for “potential bad actor networks,” as Pelczynski puts it, and trying to prevent them from “migrat[ing] from platform to platform.” Svenska Dagbladet took a different approach, speaking to several criminals who claimed to have direct knowledge of the laundering scheme.
The paper reported that Swedish gangs take criminal profits, convert them into cryptocurrency, use that to buy fake streams for artists they’re connected to, and then collect the royalties. They lose some money in the process by paying for fake streams, but the royalties they extract from the music industry are now “clean” — they can’t lead back to anything gang-related.
“There is always a cost in money laundering,” Trusty explains. But even if it’s a really high transaction cost, it still puts you in a position where you have untraceable, usable profit. And so the key for any real money laundering operation is volume. The article seems to be pointing out that this is something that’s kind of an institutional mechanism for these gangs.”
Trusty was not surprised to hear about the results of Svenska Dagbladet‘s reporting. “Anytime you have technological developments, somebody’s going to figure out a way to take advantage of those in a bad way,” he continues. “It’s eventually in the industry’s interest to lean forward and figure out how to work with law enforcement to close this gap that’s being exploited.”
The U.S. Court of Appeals for the District of Columbia Circuit ruled last week to uphold the Copyright Royalty Board’s Web V rate determination, published in the Federal Register on Oc. 27, 2021.
That determination, which impacts non-interactive, programmed plays on digital radio like Pandora and iHeartRadio, set inflation-adjusted rates at $.0026 per paid subscription stream, up from $0.0024 cents. For ad-supported streams, the CRB set a rate of $0.0021, up from $0.0018 per play. (On-demand streams from services like Spotify and Apple are not included in this determination.)
These payments from digital radio, webcasters and simulcasters are made to SoundExchange, which in turn distributes royalties to labels and recording artists. Some labels have direct deals that get them paid directly from the large radio networks — in which case they turn over the artist’s share to SoundExchange, for distribution to artists.
The Web V rate determination covers the five-year term of 2021 through 2025, but since it includes inflation-adjusted rates, on Dec. 1, 2021, the 2021 rates set in the determination were adjusted to higher rates of $0.0028 per paid subscription stream and $0.0022 per ad-supported stream.
Around the same time as the adjusted rates were set, various participants in the Web V proceedings appealed certain aspects of the initial rate determination. They included the National Association of Broadcasters (NAB), which sought lower rates than the determination; and SoundExchange, which sought higher rates for commercial non-subscription, ad-supported services than the determination; and the National Religious Broadcasters Music License Committee. The Appeals Court ruling rejected their arguments.
In addition to upholding the per-play rates, the Appeals Court also reaffirmed the doubling of the minimum rate to $1,000 per station, up from $500 per station annually, with a maximum aggregate minimum fee of $100,000 for large commercial radio broadcasters with more than 100 stations.
In a statement, SoundExchange said: “We appreciate the court’s thoughtful attention to our appeal regarding royalty rate-setting methodology, and we are pleased that the appeals court rejected broadcasters’ efforts to reduce royalty rates at the expense of hard-working artists and creators and preserved the status quo for webcasting rates through 2025.”
This ruling confirms that broadcasters compete with audio music services for listeners and, therefore, should continue to pay royalty rates on a level playing field. The appeals court determined that the broadcasters failed to adequately give reason why artists and rights owners should subsidize the broadcasting industry even more than they already do. After all, broadcasters still inexplicably get a free pass for the use of sound recordings on their AM/FM transmissions.
Meanwhile, NAB said in a statement to Radio Ink and confirmed to Billboard that it was pleased that “the Court rejected SoundExchange’s aggressive and deeply flawed arguments in favor of higher digital royalty fees and acknowledged that broadcasters could pay a lower rate for simulcasts in the future.”
(The reference to possible lower rates for simulcasts in the future comes from the Appeals Court ruling “that future records may warrant new rate category distinctions” between simulcasting and other types of commercial webcasting.)
The NAB statement continued, “We will continue advocating for reasonable streaming rates that allow broadcasters to expand their digital offerings and stream music, which will benefit performing artists, songwriters and our tens of millions of listeners.”
Last year, Pandora started to get suspicious about the streaming activity of a prominent act. “This is a top artist by every measure,” George White, senior vp of music licensing at SiriusXM and Pandora, said during a panel at the Music Biz conference in Nashville on Wednesday (May 17). Some of the interest from Pandora users was clearly genuine. But at the same time, the platform picked up “abnormalities” — “lots of quick skips,” White noted, and “very unusual ratios of radio listening to premium listening” — along with “social media sites actively posting tutorials for how to game the Pandora system and teaching potential users how to drive those streams even higher.”
“This is challenging and more difficult to detect because it’s under a background of legitimate activity,” White continued. And he said that Pandora is seeing more of this type of behavior around “established artists.”
White was one of 11 different speakers across a two-hour, three-panel fraud extravaganza — which covered a lot of ground, jumping from bot farms all the way to thieves falsely claiming publishing ownership on songs to collect money that belongs to someone else — at Music Biz. The tone stayed upbeat, though the message was glum and occasionally paranoia-inducing, with lots of talk about cybercriminals hacking into the accounts of innocent unsuspecting users for nefarious purposes.
“We’ve been seeing lately that as technology advances, the fraud is supercharged,” said Mona Simonian, a partner at the entertainment law firm Pryor Cashman. It’s important that “people start really recognizing how much money is at stake here,” she added. And as Shuman Ghosemajumder, Google’s former “click fraud czar” (real title: head of global product for trust and safety), put it: “It’s always a little bit scary before you get your arms around the problem.”
While some panels stay general, these three sessions (an interview with Ghosemajumder about the ubiquity of fraud, “52 Flavors of Fraud,” and “Fraud Use Cases: What Can We Do?”) brought some hard numbers to a fraud conversation that often remains frustratingly diffuse, because the behavior is difficult to quantify. White had his Pandora case study. And Andrew Batey, co-founder and co-CEO of the fraud detection company Beatdapp, came armed with numerous examples and a boatload of graphs.
There was the account that recorded 33,500 plays in one week. (“The average user has a few hundred to a thousand plays a week,” Batey said.) There was the user with 96 devices “playing from 47 cities in 17 countries in the same week,” a geographical impossibility for even the most devoted jet-setter. There was the group of thousands of accounts all targeting the same songs with 155-ish plays a week, and the batch of 53,000 accounts playing around a dozen acts to camouflage the one artist whose numbers they’re actually trying to inflate.
If this behavior continues undetected, it represents “billions [of dollars] that are being sucked out of this industry,” Batey said. This sentiment was echoed by Christine Barnum, chief revenue officer of CD Baby: Fraudsters are “diluting the pool for everyone.” (She spoke about ways for companies to improve their fraud detection capabilities on a budget, including using ChatGPT to help write programs that can detect anomalous activity.)
Why the upbeat mood, despite the grim news? For years, many music executives, especially in the United States, were unwilling to publicly acknowledge that fraud was a problem. The fact that there was a 120-minute block — enough time to watch two episodes of Succession, quipped Beatdapp co-founder and co-CEO Morgan Hayduk — devoted to the topic at a major music business conference is indicative of an attitude shift. “I’m so happy there’s a room full of people talking about fraud,” Barnum said.
White was similarly optimistic. While recent studies have concluded that around 80% of fraud is financially motivated — grifters running bot networks to white noise recordings, for example, rather than the work of actual artists — White said, “We’ve seen enormous strides in identifying that [activity] really early.”
“I won’t say that’s in control; it’s an issue that requires ongoing investment,” he added. “But it’s at least something we feel like we have a handle on.”
Johnny Chiang, Pandora’s senior director of country programming, will expand his role to also oversee country music programming at SiriusXM, the company tells Billboard. Chiang will report to SiriusXM/Pandora’s GM and senior vp of music programming Steve Blatter.
Chiang’s new role fills duties previously held by JR Schumann, who exited SiriusXM in July 2022. Darrin Smith, SiriusXM’s vp of programming, oversaw the satellite broadcaster’s country channels on an interim basis.
Before joining Pandora in July 2022, Chiang served as vp of radio promotions and artist development at Red Street Records following the announcement that the label had launched a country division. Prior to his work with Red Street, Chiang spent 18 years at KKBQ in Houston and was also the Cox country format leader.
During Chiang’s time at KKBQ, the station was named the Country Music Association’s major market station of the year three times (in 2014, 2016 and 2018), as well as the Academy of Country Music’s major market station of the year in 2017. It also won the Marconi four times (in 2013, 2014, 2016 and 2018). In 2016, Billboard named him the most influential country program director in the United States.
During Nashville’s Country Radio Seminar earlier this week, Chiang led a panel during CRS’ Digital Music Summit titled “Sweet Streams (Are Made of These),” which provided an overview of music streaming services. The panel also included Spotify’s Rachel Whitney and Amazon Music’s Michelle Tigard Kammerer, as each music service detailed their respective platforms’ tools for independent artists and discussed the role of playlisting in music marketing, how DSPs use data to make decisions and more.
Chiang’s role expansion comes on the heels of SiriusXM’s announcement earlier this month that it would be laying off 475 employees, or 8% of its workforce. In a statement that followed, CEO Jennifer Witz called the job cuts difficult but “the right thing to do” as the business grapples with lower ad sales, a still-delayed recovery in the automotive subscription business and major investments in its technology.
SiriusXM told workers on Monday it is letting go of 475 employees, or roughly 8% of the company’s workforce, as it works to reduce expenses and invest in new technology, the company’s CEO said in a memo to staff.
“It is critical for us to take the right steps now to secure the long-term health and profitability of our business,” SiriusXM CEO Jennifer Witz wrote in an internal memo. “Investments we are making in the business this year, coupled with today’s uncertain economic environment, require us to think differently about how our organization is structured.”
The satellite radio company said it was exploring job cuts last November to deal with how a worsening economic outlook is impacting demand for ads and other areas of its business. The staff reductions announced Monday place SiriusXM alongside Apple, Microsoft, Spotify and Alphabet as companies that have announced layoffs in 2023.
More than 123,000 employees have been let go from technology industry jobs so far in 2023, with most job cuts reported in January, according to Layoffs.fyi, a website that track workforce reductions.
Last month, SiriusXM reported 2022 revenues grew by 4% to $9 billion, but Witz cautioned she expected a “a softer first half (of 2023) in terms of revenue … and subscriber growth” compared to last year.
The job cuts will hit nearly every department in the company, and employees who are being let go will start to receive notice today, Witz said, adding she is grateful for their work.
During Witz’s tenure as CEO, SiriusXM has hired about 1,500 new employees, bringing the company’s total headcount to just under 5,700, according to filings from 2022.
The company is in the process of updating the back-end technology and user-friendliness of its SiriusXM app, which Witz has said will enable the company to introduce new products to the app faster, a key part of the company’s growth strategy.
Sirius has also struggled in recent quarters with a slowdown in Pandora subscriber revenue and higher expenses from investments in podcasting and technology.
SiriusXM has launched a new program aimed at developing and breaking emerging artists, the company tells Billboard.
Created by the SiriusXM and Pandora programming and curation teams, the Artist Accelerator program will select six to 12 artists across a wide range of genres over the next year. All of them will receive focused programming for a sustained campaign across SiriusXM channels and Pandora stations, as well as ongoing marketing support from both brands.
The program’s inaugural artist is Def Jam/High Standardz signee Coco Jones, whose latest single “I.C.U.”, from her debut EP What I Didn’t Tell You, has been playing in accelerated rotation on SiriusXM’s The Heat and Heart & Soul stations since Oct. 21. On Pandora, “I.C.U.” has been added to various playlists and radio stations across the platform, including New R&B, Black Music Forever, Adult R&B, PLATINUM, Today’s R&B and Hip Hop Hits, Women in R&B and more. The streaming service is also featuring exclusive audio content from Jones via “artist takeover” modes currently running on the PLATINUM and Women in R&B stations, where she takes listeners through the process of recording the EP and hand-picks tracks from some of the artists who inspired her.
“Introducing our audiences to new artists and investing in those artists’ development is a core value of both SiriusXM and Pandora and we are excited to unveil our Artist Accelerator program to the industry,” said Steve Blatter, senior vp/general manager of music programming at SiriusXM. “The program brings together SiriusXM and Pandora to accelerate the growth of artists across our combined massive listener base.”
In addition to her burgeoning music career, Jones has been working as an actor in TV and film since she was a tween. The 24-year-old currently portrays Hilary Banks on Peacock’s Fresh Prince reboot, Bel-Air. On TikTok, where she boasts nearly 2 million followers, she is dedicated to upping representation for dark-skinned Black women.
“I genuinely could not be more excited to be partnered with SiriusXM and Pandora,” said Jones. “The way that they’ve supported me and found new ways to highlight my future while acknowledging my past, is iconic. There’s definitely more to come, this is just the beginning! I’m excited for y’all to come with me through the whole journey!”
SiriusXM is just the latest platform to introduce an artist development program. In 2017, Apple Music launched the artist spotlight program Up Next, while SoundCloud introduced First on SoundCloud the following year. And in 2021, Spotify launched Fresh Finds, an extension of the playlist hub of the same name that provides emerging acts with on- and off-platform support.
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: Major law firms cut ties with Kanye West over his antisemitic comments, Slacker fights with SoundExchange over a huge royalties judgment, Coachella sues a nearby business called “Coachillin,” and much more.
THE BIG STORY: Kanye West Is Running Out of Lawyers
After a string of antisemitic statements earlier this month, Kanye West has lost nearly every aspect of his once-formidable business empire. His representatives at CAA have dropped him, and his signature fashion partnerships with Adidas, The Gap and Balenciaga have all been terminated.You can now add his lawyers to that list.Cadwalader Wickersham & Taft, the prestigious Wall Street firm that represented Kanye in his dealings with Gap, confirmed to multiple outlets last week that the firm is not currently representing him and “have made the decision not to work with him in the future.”Greenberg Traurig, a top music firm that’s repping him in both a copyright lawsuit and an employment case, said it was taking steps to withdraw from those cases as fast as ethically possible: “This firm was founded by individuals who faced discrimination and many of us lost ancestors because of that kind of hate and prejudice,” the firm wrote in a statement, referring to Jewish founders Larry Hoffman, Mel Greenberg and Robert Traurig.Robert Cohen of Cohen Clair Lans Greifer Thorpe & Rottenstreich, the rapper’s sixth divorce attorney in his split with Kim Kardashian who he only just hired in September, has also dropped him, according to a report from Reuters. And Brown Rudnick partner Camille Vasquez, who rose to prominence representing Johnny Depp in his defamation case against Amber Heard, quit just days after being hired by the embattled rapper, as first reported by the New York Post.It seems even prospective lawyers are distancing themselves. Quinn Emanuel Urquhart & Sullivan partner Alex Spiro, a Billboard Top Music Lawyer who reps Jay-Z and Elon Musk, told Reuters that Ye “asked me to be his attorney but the representation never formalized.” Spiro made it clear: “I do not represent Mr. West.”A lack of options for legal representation isn’t a great situation for West, because he has no shortage of legal problems.Even if he avoids any court battles over his various corporate breakups — and that’s far from certain, given the messy web of intellectual property he splits with Adidas and other former partners — he’s still got plenty of litigation ahead, including looming December deadlines in the divorce case; multiple copyright lawsuits over claims of illegal sampling; a case claiming he stiffed a production company that worked on his Sunday Service; a lawsuit claiming he refused to return clothes to a high-end fashion rental service; a case claiming he owes $4.5 million to a celebrity accountant he abruptly fired; and threats of lawsuits from the family of George Floyd over his incendiary statements about Floyd’s killing.
Other top stories this week…
SLACKER’S ROYALTY WOES – Slacker warned a judge that a recent ruling, requiring the streamer to hand over nearly $10 million in unpaid royalties to SoundExchange, would cause “economic damage” for the company that would be “unsustainable.” But SoundExchange quickly fired back that it had spent years “indulging” such excuses and that labels and artists had waited “long enough” to get paid by the streamer: “The court should deny defendants’ latest attempt to shirk their obligations with the promise that next time will be different.”COACHELLA v. ‘COACHILLIN’ – AEG’s Goldenvoice, the owner of Coachella, filed a trademark infringement lawsuit over a planned “Coachillin” business park located just a few miles north of the festival grounds at the Empire Polo Club. The suit said the 160-acre development plan, aimed at cannabis businesses, isn’t a problem — but needs to pick a new name: “The public has come to associate the phrase ‘Coachillin’ to refer to the Coachella Festival and plaintiffs, not merely to refer to the Coachella Valley — and certainly not Coachillin Holdings.” The case is the latest in a string of trademark cases from Goldenvoice, which sued Ticketmaster last year over a New Year’s Eve concert called “Coachella Day One 22″ and sued a West African company last month over an event called “Afrochella.”COMEDY CARTEL? JUDGE SAYS NO – A federal judge rejected one of Pandora’s key arguments in its legal battle with comedians, dismissing claims that a licensing group called Word Collections was operating as an illegal comedy “cartel” that violated federal antitrust laws. The ruling came in sprawling litigation filed by a slew of comics who want Pandora to start paying the equivalent of publishing royalties for spoken-word content. Faced with those allegations, the streamer responded by arguing that Word Collections and the comedians were effectively trying to create a “monopolistic portfolio” of comedy rights, aimed at “dramatically increasing” the prices streamers must pay. But in the ruling this week, the judge didn’t buy it — saying Pandora didn’t properly allege that the comics had conspired to fix prices, nor that their grouping amounted to an illegal monopoly in the comedy world.BAIL REVOKED FOR TORY LANEZ – A Los Angeles judge ordered Tory Lanezto be placed under house arrest ahead of a trial over accusations that he shot Megan Thee Stallion, citing an incident last month in which the singer allegedly assaulted singer August Alsina in Chicago. The singer is facing more than 22 years in prison over the alleged July 2020 altercation with Stallion, in which he allegedly shot her in the foot during an argument following a party in the Hollywood Hills. The trial is set to kick off at the end of November and the singer had been out on bail, but in September Alsina claimed that Lanez and his entourage attacked him following a Chicago concert. Prosecutors at the time said they were investigating those claims, and Judge David Herriford cited the accusations to revoke Lanez’ bail this week.
