The Legal Beat

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: Prosecutors file a first-of-its-kind criminal case against an alleged streaming fraudster who made $10 million with fake songs; the White Stripes file a copyright case against Donald Trump over use of their music; Spotify wins a strongly-worded ruling dismissing a long-running lawsuit filed by Eminem’s publisher; and much more.

THE BIG STORY: Streaming Fraud Finally Goes To Court

When Manhattan federal prosecutors indicted a North Carolina musician named Michael Smith last week, accusing him of stealing $10 million in streaming royalties as part of a “brazen fraud scheme,” they told a story that much of the music industry already knew. Streaming fraud – artificially boosting traffic for certain songs – has been a growing problem for years. One study found that 1% to 3% of plays in France in 2021 were fraudulent; a 2022 report by fraud-detection service Beatdapp estimated that more than 10% of global streams were fake.  And this isn’t the scam from “Office Space,” stealing fractions of a penny from a faceless tech giant. Because royalties are calculated as a percentage of a finite pie, every phony stream represents real money being diverted away from music that consumers actually played and the artists who created it. In the first-of-its-kind indictment, the feds say Smith created thousands of fake songs, then used an army of bots to play them billions of times on Spotify and other streamers. At one point, Smith estimated that he could play his songs 661,440 times each day, raking in as much as $1.2 million per year. Prosecutors say Smith’s plot was aided by artificial intelligence – another growing problem for the industry. When he couldn’t create enough fake tracks to make the scam work, Smith allegedly partnered with an unnamed executive at an A.I. music company to produce grist for his mill, funneling money back in the form of percentage cuts. For more details go read Kristin Robinson’s stories – on the filing of the charges, and on an AI company with strong ties to the accused fraudster. 

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Other top stories this week…

“SUES FASCISTS” – The White Stripes filed a copyright lawsuit against Donald Trump for using their iconic “Seven Nation Army” in a social media post, arguing that any association with the president was “offensive” because they “vehemently oppose” his policies and his bid for another term in the White House. In announcing the case, Jack White included a screenshot of the complaint with the caption “this machine sues fascists” – an allusion to Woody Guthrie’s famous use of a sticker reading “this machine kills fascists” on his guitar during World War II. The White Stripes are the latest in a long list of musical artists to threaten or take legal action against Trump over his use of music. LOSE YOUR CASE – Spotify defeated a long-running lawsuit filed by Eminem’s publisher, Eight Mile Style, that claimed the rapper’s music had been streamed illegally “billions” of times on the platform. Rather than order Spotify to pay, the judge sharply criticized Eight Mile for suing in the first place, ruling that the company had effectively manufactured the lawsuit in an effort to win legal damages. “Eight Mile Style was not a hapless victim,” the judge wrote. DIDDY DAMAGES – A Michigan inmate named Derrick Lee Cardello-Smith won a $100 million default judgment against Sean “Diddy” Combs in a sexual assault lawsuit — an eye-popping figure that was handed down after the rapper did not show up in court or file any formal response to the case. Following the ruling, Combs’ lawyers strongly denied that the rapper was served with the lawsuit and said he “looks forward to having this judgment swiftly dismissed.” GUESS WHO TRUCE – The members of classic rock band The Guess Who settled a bitter trademark lawsuit in which two bandmates (Randy Bachman and Burton Cummings) referred to a recent iteration of the group run by two others (Jim Kale and Garry Peterson) as nothing more than a “cover band.” COPYRIGHT CLAPBACK – Verizon fired back at a lawsuit filed by Universal Music Group, Warner Music Group and Sony Music Entertainment over allegations of “staggering” piracy on its network. The labels claim Verizon “buried its head in the sand” and enabled illegal filesharing, but in a motion to dismiss, the telecom giant blasted the “legally deficient” premise of the case: “When people do bad things online, their internet service providers are not typically the ones to blame. This lawsuit claims otherwise.” 

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: AI music firms Suno and Udio hit back hard at a billion-dollar copyright lawsuit filed by the major labels; Damon Dash faces a court-ordered auction of his one-third stake in Jay-Z’s Roc-A-Fella Records; Cardi B files for divorce from husband Offset; and much more.

THE BIG STORY: “A Threat to Their Market Share” 

The first “answer” to a lawsuit is typically a pretty sparse document. An accused defendant admits or denies each claim and offers up a list of every possible defense they might use, but that’s about it. The real arguments are usually saved for later filings, like a motion to dismiss the case. That’s what made the answers filed last week by AI music firms Suno and Udio so fascinating. Facing sprawling copyright lawsuits from the music industry, the two companies went well beyond boilerplate denials – offering extended arguments that attempted to frame the narrative of a multi-billion dollar legal battle that could take years to resolve. In doing so, they admitted to using copyrighted songs to train their models, and they argued that doing so was clearly a form of legal “fair use.” And they blasted the major labels (Universal Music Group, Warner Music Group and Sony Music Entertainment) that filed the case, accusing them of abusing copyright law to maintain that power. “What the major record labels really don’t want is competition,” Suno wrote in its filing. “Where Suno sees musicians, teachers and everyday people using a new tool to create original music, the labels see a threat to their market share.” Go read our full story on the response filings, with access to the full arguments made by both companies. 

Other top stories this week…

REASONABLE DOUBT? – Damon Dash’s one-third stake in Jay-Z’s Roc-A-Fella Records is going up for a court-ordered auction later this month to help pay off his debts – namely, more than $1 million in legal judgments and another $145,000 in unpaid child support. The minimum bid for the auction has been set at $1.2 million, but it’s not exactly clear what the buyer would be purchasing — and they shouldn’t expect a normal due diligence process. JT PLEADS NOT GUILTY – Justin Timberlake entered a not guilty plea to drunk driving charges following his June arrest in the Hamptons, appearing virtually while on the European leg of his Forget Tomorrow World Tour. During the hearing, the star’s attorney reiterated previous statements that Timberlake (who refused to take a breathalyzer) was actually not intoxicated at the time of his arrest. CARDI B DIVORCE – Cardi B filed for divorce from Offset after seven years of marriage, a split that her reps said “has been a long time coming and is amicable.” In her divorce petition, filed in New Jersey court, the Grammy-winning hip-hop superstar is seeking primary custody of her two children and unborn baby on the way, as well as child support from Offset. The “WAP” star previously filed for divorce in 2020 in Atlanta, but later withdrew the case after the two stars reconciled. DON’T STOP LITIGATIN’ – The never-ending legal battle between Journey members Jonathan Cain and Neal Schon erupted yet again, with Cain filing a new lawsuit against Schon over claims that his “exorbitant” spending and other problems have led to a “deadlock” that’s threatening to cripple the band’s touring operations. If you want an idea of how dysfunctional things have gotten between Cain and Schon: “It is common that one director will terminate an employee or crew member, and hours or days later, the other director will rehire that same individual.” NO BOND FOR YOUNG THUG – Judge Paige Reese Whitaker, the newly-installed replacement judge overseeing Young Thug’s sprawling Atlanta gang trial, denied the rapper’s renewed request to be released from jail, leaving him incarcerated until a verdict is reached sometime next year. Thug has already been sitting in jail for more than two years while the slow-moving case has dragged on, through an unprecedented 10-month jury selection, a trial marked by delays and disruptions, and now weeks of tumult over a secret meeting between the judge and prosecutors. FEDERAL AI DEEPFAKES BILL – A bipartisan group of U.S. senators introduced the NO FAKES Act, which aims to protect artists and others from deepfakes and AI-powered fake vocals like last year’s Fake Drake song. The bill would for the first time create federal intellectual property protections for the so-called right of publicity, which restricts how someone’s name, image, likeness and voice can be used without consent.  STUBHUB SUED OVER ‘JUNK FEES’ – StubHub was hit with a lawsuit from Washington D.C.’s attorney general over allegations that the ticket resale platform foists “convoluted junk fees” on concertgoers after luring them in with “deceptively low prices.” The case, which echoes complaints made by the Department of Justice about Live Nation and Ticketmaster, claims that DC consumers alone have paid $118 million in such fees to StubHub since 2015. R. KELLY AT SCOTUS – The disgraced R&B singer took one of his sex abuse convictions to the U.S. Supreme Court, urging the justices to overturn his convictions for child pornography and enticement on statute of limitations grounds. The appeal does not deal with Kelly’s other set of convictions on racketeering charges, which remains pending before a lower court. KISS KISS, BANG BANG – The 1975 and the band’s frontman Matty Healy were hit with a $2.4 million lawsuit from the organizers of Malaysia’s Good Vibes Festival – an event that was shut down last summer after Healy gave a speech criticizing the country’s anti-LGBTQ laws and then kissed a male bandmate on stage. The incident (which has been criticized by local rights activists as counterproductive) breached the band’s contract with the festival, according to the lawsuit. SAMPLE SETTLEMENT – French Montana reached a settlement to end a lawsuit claiming his 2022 song “Blue Chills” features an unlicensed sample from Skylar Gudasz’s 2020 song “Femme Fatale.” The deal will resolve a case that claimed French’s reps had tentatively agreed to license the clip, but that the rapper released the song without ever actually doing so. JUICE WRLD ESTATE SUED – A music producer named Joshua Jaramillo is suing Juice WRLD’s estate over claims that he’s owed royalties from the late rapper’s 2021 hit “Girl of My Dreams.” Jaramillo claims he was promised a 5% ownership stake and an additional 1% producer royalty for the track, which featured Suga of BTS and debuted at No. 29 on the Hot 100. ANOTHER TIKTOK CASE – The Justice Department filed a new lawsuit against TikTok claiming the social media giant had violated children’s online privacy law and run afoul of a previous settlement with the Federal Trade Commission. While serious, the case is likely second on the list for TikTok’s legal team, which is also litigating a separate lawsuit challenging legislation that would block the company from operating in the U.S. entirely. CYRUS DIVORCE SETTLED – Billy Ray Cyrus and wife Firerose (born Johanna Hodges) have reached a settlement to end their contentious divorce case, ending weeks of hyperbolic accusations of abuse and wrongdoing from both sides. In a statement, Cyrus said he was “relieved” and called the short-lived marriage an “insane scam.” A source close to Firerose countered with a statement that said she had settled for no money and wanted her husband’s “smear campaign” to end. KEHLANI CULT CLAIMS – Kehlani’s ex-partner Javaughn Young-White filed a petition seeking legal and physical custody of their 5-year-old daughter, claiming that singer is involved in a cult. “This cult controls her actions and her behavior, including when it comes to the upbringing of our daughter,” Young-White’s lawyers wrote. 

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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: Martin Shkreli argues he wasn’t required to turn over personal copies of a rare of Wu-Tang Clan album to prosecutors; a litigious rock photographer sues Warner Records in the latest of more than 50 copyright lawsuits; the new judge in Young Thug’s gang trial faces a flood of new motions; and more.

THE BIG STORY: The Plot Thickens In Wu-Tang Album Case

When Martin Shkreli was convicted of securities fraud and ordered to forfeit his copy of Wu-Tang Clan’s Once Upon a Time in Shaolin to federal prosecutors, was he allowed to retain personal copies? PleasrDAO — a digital art collective that bought the one-of-a-kind album from the government in 2021 —certainly thinks he wasn’t. The group sued Shkreli in federal court last month, accusing him of violating that forfeiture order by retaining copies and then threatening to leak them to the public, a move it says would destroy the value of the rare album. But in a new response last week, Shkreli’s attorneys told a very different story.  Everyone knows that when the disgraced “Pharma Bro” bought the only copy of Wu-Tang’s album in 2014, the deal came with bizarre contractual requirements — namely, that he couldn’t release it to the general public until 2103. But Shkreli’s lawyers say the deal did allow him to make personal copies for private use. And when he turned over the physical CD to the government, his lawyers say he wasn’t required to hand over those private copies: “Defendant continues to have the right to use them to this day.” A month into the lawsuit, two dueling visions are coming into view. Pleasr is leaning on the forfeiture order, citing a passage that banned Shkreli from taking any action that would “affect the availability, marketability or value” of the album. Defense lawyers, on the other hand, point to the government’s sale to Pleasr, arguing that the feds made no assurances that the original CD was the only copy of Shaolin in existence. “Plaintiff was well aware that its purchase of assets from did not include any promise or expectation of ‘exclusivity’ or ‘uniqueness,’” Shkreli’s lawyers wrote. “It bought a copy of a musical work that it knew was not unique, and cannot now claim to be irreparably harmed by the existence of its non-uniqueness.” For more, go read our full story on the Shaolin case — and stay tuned for a looming ruling from the judge on whether to impose a preliminary injunction against Shkreli. 

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Other top stories this week…

LEGAL EXPOSURE? – Neil Zlozower, a veteran rock photographer who’s snapped images of Led Zeppelin, The Rolling Stones and many other bands, filed a copyright infringement lawsuit against Warner Records, accusing the label of using his photo of Tom Petty in a Facebook post without permission. It turns out the case is hardly the first for Zlozower, who has filed a whopping 57 copyright lawsuits since 2016, targeting Universal Music Group, Spotify, Ticketmaster, Mötley Crüe and many others over alleged unauthorized use of his images.CONCERT MELEE – Chris Brown and Live Nation were sued again over an alleged melee that took place backstage at a concert in Fort Worth last week, this time by a security guard who says he was “brutally and severely” beaten when he tried to break up the fight. The lawsuit, which cites Brown’s high-profile 2009 attack on his then-girlfriend Rihanna that led to a felony conviction, comes after the alleged victims themselves filed their own separate case.YSL CASE UPDATE – The new judge in Young Thug’s sprawling Atlanta gang trial, Judge Paige Reese Whitaker, has been greeted by a flood of new motions, including a renewed demand to release the rapper from the “torturous conditions” he’s faced while sitting in jail for more than two years. Judge Ural Glanville, who was removed from the case earlier this month after revelations of a secret meeting with prosecutors and a key witness, had repeatedly denied such requests. SHOOTING ARRESTS – Three men were arrested in Jacksonville in connection with the deadly shooting of rapper Julio Foolio last month. Sean Gathright, 18, Alicia Andrews, 21, and Isaiah Chance Jr., 21, were each charged with premeditated first degree murder with a firearm, among other charges, over the June 23 killing.

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: Michael Jackson’s estate scores a victory in litigation over a $600 million catalog sale; Snoop Dogg is hit with a copyright lawsuit that cites Tracy Chapman; Melissa Etheridge faces a legal battle from her partners in her failed cannabis business; and much more. 

THE BIG STORY: Jackson Estate Scores Legal Victory 

Michael Jackson’s estate won a key ruling last week in a legal battle with the late singer’s mother — and though it’s only a “tentative” win, the stakes are enormous. More than 15 years after Jackson’s death, his estate is still tied up in probate court, reportedly over unresolved tax issues. So when the King of Pop’s executors wanted to sell part of his catalog to Sony Music for more than $600 million, it asked a California judge for approval to do so. Katherine Jackson objected, arguing that the sale “violated Michael’s wishes” and that the catalog would likely continue to gain value over time if retained, among other arguments. Last week, a California appeals court tentatively rejected Katherine’s objections — ruling that it would likely rule for the estate both procedurally (that she had failed to preserve arguments on appeal) and substantively (that the estate’s executors had the power to make the Sony deal.)Go read our full story on the decision — and stay tuned for whether the court decides to finalize its ruling. 

Other top stories this week…

LEGAL LEGEND – While we’re on the subject of the Jackson estate, go read Frank DiGiacomo’s excellent profile of estate co-executor John Branca, a music attorney who at various points in his career has represented Bob Dylan, The Beach Boys, Paul McCartney, the Elvis Presley estate and The Rolling Stones. SNOOP LIABILITY – Snoop Dogg was sued for copyright infringement over allegations that the legendary rapper has refused to pay a veteran studio musician after using two of his backing tracks. The case offers a glimpse at industry practices surrounding the use of uncleared samples to privately “experiment” in the recording studio — and cites an earlier battle between Tracy Chapman and Nicki Minaj over that same issue. WEED WAR – Melissa Etheridge is facing a legal battle over her brief foray into the cannabis business, filed by two business partners in Northern California (Josephine and D’Angelo Roberto) who say they “invested their life’s work into the businesses” but claim the singer “abandoned them” and left them in “financial ruin.” AN “ABHORRENT SCHEME”– Attorneys for Priscilla Presley filed a lawsuit against four of her former business partners over allegations of elder abuse and fraud, accusing them of a “meticulously planned” scheme to drain Elvis Presley’s ex-wife of “every last penny she had” — including nearly $1 million to date and 80% of her future income.ANOTHER DAY, ANOTHER JUDGE – Just two days after Judge Ural Glanville was ordered removed from Young Thug’s sprawling Atlanta gang trial, his replacement on the trial bench (Judge Shukura L. Ingram) said that she would also recuse herself. Later the same day, Judge Paige Reese Whitaker assumed control of the massive racketeering case and now appears to be settling in to run it for the long haul. KANYE SUED AGAIN – Ye (formerly Kanye West) was sued yet again over claims of illegal sampling, this time over allegations that he used an instrumental track called “MSD PT2” in two songs from the album Donda even after he was explicitly denied permission. The case closely echoes a lawsuit filed against him by the estate of Donna Summer, which similarly claimed that he had used one of her songs even after being directly refused a license. That case settled last month. GOSSIP OR DEFAMATION? Soulja Boy launched a defamation lawsuit against social media personalities Tasha K and William The Baddest, claiming that they made false statements on a podcast about the rapper having a sexual encounter with a man — or, in the words of his lawyers, “redefining his character as a man who is not straight.” If Tasha K’s name sounds familiar, it should: She’s the gossip host who Cardi B sued for defamation over claims about STDs, drug use and prostitution, eventually winning a $4 million judgment. NBA MUSIC LAWSUITS – More than a dozen NBA teams were sued for copyright infringement by Kobalt and other music companies over allegations that the basketball teams used songs in social media videos without permission. The cases came with city-specific flair: The New York Knicks were accused of using songs by “New York legends” Jay-Z and Cardi B; the Philadelphia 76ers allegedly used music from Philly native Meek Mill; and the Atlanta Hawks took songs by “Atlanta’s own” Migos and OutKast. MUSIC AI BATTLES – How are the copyright lawsuits against AI music firms Suno and Udio going to shake out? Billboard’s Robert Levine breaks down the fair use doctrine and how it might be applied to the new frontier of training artificial intelligence models, particularly in the wake of high-profile cases involving Google Books, the Android operating system and an Andy Warhol print of Prince. ROYALTY ROW – SoundExchange sued a free streaming service called AccuRadio over allegations that the company has failed to pay royalties for music for years, claiming the streamer has “directly harmed creators.” The small streamer denied the allegations, saying it had reliably paid $12.5 million in royalties over the years but was struggling with high rates imposed on online radio. BACKSTAGE MELEE – Chris Brown, Live Nation and several members of his entourage were hit with a lawsuit over an alleged assault that took place following Brown’s concert last week in Fort Worth, Texas. The case claims that Brown and others “brutally and severely beat” four men backstage in an unprovoked attack following the show. CHIPPING AWAY – Attorneys for Live Nation asked a federal judge to dismiss part of the Justice Department’s antitrust lawsuit — specifically, that the concert promoter uses illegal tying arrangements to operate its amphitheaters. The company argued that this practice, described as a “refusal to deal,” is common in the concert business and protected by Supreme Court precedent.  

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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: Wu-Tang Clan’s one-of-a-kind album is at the center of a lawsuit against Martin Shkreli; Justin Timberlake faces a drunk driving charge; Young Thug’s lawyer avoids jail and demands that a judge recuse himself; Drake is sued by Members Only for trademark infringement; and much more.

THE BIG STORY: Once Upon A Time In Court

When the Wu-Tang Clan auctioned off their one-of-a-kind album Once Upon a Time in Shaolin to Martin Shkreli in 2015, the deal was famous for its kooky restrictions. A rumor about a clause allowing Bill Murray to steal the CD in a heist turned out to be fictional, but the deal really did include a requirement that the music could not be released to the general public until 2103.  Needless to say, a lot has changed since then. Shkreli soon became the hated “Pharma Bro” who spiked the price of crucial AIDS medications; he then forfeited the album to federal prosecutors after he was convicted on securities fraud charges. Years later, the government then re-sold Shaolin to a group called PleasrDAO. But those weird contractual restrictions came back into the picture twice this past week — first when Pleasr sued Shkreli for threatening to leak the album online, and again when Pleasr itself said it would be offering fans the chance to buy a snippet of the mysterious album for just $1. Go read our full story on the lawsuit against Shkreli, which Billboard will be monitoring closely as it moves forward in court. And then go read our deep-dive into how a famously restricted album is being “offered to the public” decades earlier than it was supposed to be. 

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Other top stories this week…

TIMBERLAKE ARREST – Justin Timberlake was arrested in the Hamptons on suspicion of driving while intoxicated after a police officer pulled him over for running a stop sign and failing to stay in his lane. According to court records, Timberlake told police he “had one martini and I followed my friends home,” but his “eyes were bloodshot and glassy” and the officer smelled “a strong odor of an alcoholic beverage” before he failed a field sobriety test.NO JAIL FOR THUG’S LAWYER – Young Thug’s attorney in his Atlanta gang trial isn’t going to jail — at least not for now. Days after Judge Ural Glanville held Brian Steel in contempt over a bizarre courtroom episode centered on claims of a secret meeting between the judge, prosecutors and a key witness, Georgia’s Supreme Court hit pause on Steel’s sentence while it reviews the judge’s decision. RECUSAL REFUSAL – Meanwhile, Steel demanded that Glanville recuse himself from the case, arguing that the secret meeting was an “unforgiveable” error and that the judge had “forfeited its role as an impartial judge and has become a member of the prosecution team.” The judge quickly denied the motion, saying Steel had provided only “bare assertions and legal conclusions.” MEMBERS ONLY v. DRAKE – Drake’s production company was hit with a lawsuit from the apparel brand Members Only, which claims that he’s been selling tour merch that infringed the company’s trademarks. The superstar’s concert t-shirts are a reference to a track of the same name on his 2023 album For All the Dogs, but the lawsuit says that’s no excuse. CARTEL CONCERTS? Angel Del Villar, the CEO of Los Angeles-based Del Records, asked a federal judge to dismiss criminal charges accusing him of doing business with a concert promoter linked to Mexican drug cartels. Del Villar’s lawyers say the indictment, handed down in 2022, is unfairly vague and the sign of an eventual “sucker punch” by prosecutors. LIL UZI SUED OVER UNPAID BILLS – Lil Uzi Vert was sued by a touring production company called M99 Studios that claims the rapper owes more than $500,000 in unpaid bills for work done at last year’s Rolling Loud, Roots Picnic and other events. Among other things, the lawsuit claims the bills involve satisfying the rapper’s “unrealistic production requests,” including finding and hiring more than two dozen adult dancers to appear onstage at a concert last year. DIVORCE DRAMA – Billy Ray Cyrus filed an emergency motion in Tennessee court amid his ongoing divorce from the singer Firerose, accusing her of nearly $100,000 in unauthorized credit card charges and seeking a temporary restraining order to stop her.