France's Believe faces $500 mln copyright dispute with UMG in the U.S. (updated)

Believe SA

05/11/2024 13:13

(Adds details, rewrites throughout)
       Nov 5 (Reuters) - Shares in French digital music company
Believe  BLV.PA  rose 1.6% in a delayed start to trading on
Tuesday after Universal Music Group filed a copyright
infringement complaint in the U.S., seeking damages of at least
$500 million (459.09 million euros).
    UMG  UMG.AS , the world's biggest music label, alleges that
Believe and its U.S. unit TuneCore have profited from the
distribution of infringing copies of copyrighted recordings.
    "Their (Believe) illegal practices are not limited to
cheating artists on major labels but artists on independent
labels as well-including artists on the independent labels
within the trade bodies of which Believe is itself a member," a
UMG spokesperson said.
        Believe did not respond to a request for comment sent by
Reuters to its communications and investor relations emails. 
  
        Its CEO also did not immediately respond.
  
    The plaintiffs argue that Believe has been distributing
copyrighted material by changing the name of the artists or by
publishing "sped-up" versions of original songs.
    Tracks made by Kendrick Lamar, Ariana Grande, Justin Bieber
and Lady Gaga are distributed by Believe under fake names like
"Kendrik Laamar", "Arriana Gramde", "Jutin Bieber" and "Llady
Gaga", plaintiffs say in their court filing.
    Based in Paris, where it listed in 2021, Believe was founded
in 2005 by former Vivendi  VIV.PA  executive Denis
Ladegaillerie.
    The firm operates in 50 countries, and it has expanded its
market share by acquiring other music labels in both Europe and
the Americas, with the former bringing in most of the group
revenue.
     Believe's initial goal was to shake up the music
distribution industry by promoting artists digitally, a strategy
that has fuelled competition with other mainstream labels.
    Its music catalogue appears on social media platforms and
streaming services such as TikTok, YouTube, Spotify, and Apple
Music.
    The complaint has been filed in the United States District
Court for the Southern District of New York.

(1 euro = $1.0891)

 (Reporting by Gianluca Lo Nostro in Gdansk and Florence Loève
in Paris, Editing by Louise Heavens)
 ((gianluca.lonostro@thomsonreuters.com;))