UMG sues Believe for $500m over piracy claims

The lawsuit, filed in a federal court in New York and seeking a trial by jury, alleges that Believe distributed altered versions of tracks that are simply sped-up versions of songs by stars like Ariana Grande, Billie Eilish, and Elton John.

UMG claims that Believe’s business model is based on pirating copyrighted music, distributing millions of unverified tracks, including remixed versions of UMG artists’ songs, and falsely claiming ownership on YouTube’s Content ID system.

The lawsuit further states: “Believe’s client list is overrun with fraudulent ‘artists’ and pirate record labels who rely on Believe and its distribution network to seed infringing copies of popular sound recordings throughout the digital music ecosystem.”

UMG accuses Believe of turning a blind eye to widespread copyright violations, claiming the company has failed to take basic measures to prevent piracy. A UMG spokesperson added: “Believe is a company built on industrial-scale copyright infringement… their illegal practices are not limited to cheating artists on major labels but also artists on independent labels.”

Founded in 2005, Believe is a Paris-based company with strong ties to major platforms like Spotify and YouTube. In June, TuneCore, owned by Believe, announced that its artists had earned over $4bn since the company’s founding in 2006, citing success driven by partnerships with digital platforms, the expansion of TuneCore Publishing, and the TuneCore Accelerator programme. However, UMG’s lawsuit paints a different picture, accusing Believe of enabling piracy to fuel its growth.

In May 2024, UMG and TikTok announced a new “multi-dimensional licensing agreement” following a breakdown in their negotiations earlier in the year over fair compensation for artists and songwriters, as well as concerns about AI and online safety. This deal, which follows UMG’s withdrawal of its entire catalogue from TikTok in January after failed negotiations, would see UMG’s music and Universal Music Publishing Group’s songs return to the platform. The agreement is built on a commitment to enhance remuneration for UMG artists and songwriters, provide new promotional opportunities, and ensure protections against generative AI. TikTok users can now look forward to using music from some of the world’s biggest artists, as well as emerging talent, in their videos.

Meanwhile, UMG reported strong Q3 financial results, with revenue of €2.87bn, a 4.3% year-over-year increase, and a 6.9% rise in adjusted EBITDA to €621m. For the year-to-date, UMG’s total revenue reached €8.4bn, up 6.3%, with a 10% rise in adjusted EBITDA to €1.86 billion. The growth was driven by strong performance in all segments, with subscription revenue up 7.6%, although streaming revenue saw a slight decline. Top-selling artists included Taylor Swift, Billie Eilish, Sabrina Carpenter, and Post Malone.