In today's CMU Daily: US appeals court overturn $1 billion judgement against Cox Communications in piracy case

One Liners: Beatles biopics, South Coast Music and Wolf Alice deals; Atlantic and Black Lives In Music appointments; Mothers In Music All-Dayer; Apple Music’s monthly Replay; Calvin Harris and Ellie Goulding BRITs performance; new music from Kasabian, MGMT, Bullion, Real Estate, Kneecap, Drahla and Káryyn

Also today: Universal splurges $240 million on Chord Music song rights stake; Supertramp's big fallout over money heads to court; Viagogo to pay out compensation in Swiss settlement

Music industry’s billion dollar damages win in Cox case overturned 

The US Fourth Circuit Appeals Court has overturned the billion dollar damages ruling won by the major record companies against American internet service provider Cox Communications. This is as a result of the appeals judges rejecting part of a previous ruling that said the infringement the ISP was liable for was vicarious - which meant it had both control over the infringement and benefited from it financially. 

"The jury found Cox liable for both willful contributory and vicarious infringement of 10,017 copyrighted works owned by plaintiffs and awarded $1 billion in statutory damages", the Fourth Circuit writes in its new judgement, summarising the original ruling in this case. “We affirm the jury’s finding of willful contributory infringement. But we reverse the vicarious liability verdict and remand for a new trial on damages because Cox did not profit from its subscribers’ acts of infringement, a legal prerequisite for vicarious liability". 

Cox is one of many US ISPs to have been sued by the music industry. The record labels argued that Cox deliberately turned a blind eye to customers who were repeatedly infringing copyright via its networks. In doing so, the ISP lost the protection of the copyright safe harbour for internet companies and could be held liable for its customers’ infringement. 

BMG initially sued Cox in a case that set the precedent that ISPs could indeed be held liable for copyright infringement in those scenarios. The majors then filed their own lawsuit and, in 2019, won that billion dollars in damages, confirming that this kind of infringement could be costly for the ISPs. Other internet companies have since been found liable for infringement too, though the damages awarded have never got anywhere near to what Cox was ordered to pay. 

Cox unsurprisingly appealed, with mixed success, given that the Fourth Circuit agreed with the lower court that the ISP was liable for contributory copyright infringement, just not vicarious infringement. 

"To prove vicarious liability [the labels] had to show that Cox profited from its subscribers’ infringing download and distribution of [their] copyrighted songs", the appeals judgement explains. "The district court thought it was enough that Cox repeatedly declined to terminate infringing subscribers’ internet service in order to continue collecting their monthly fees".

"Evidence showed that, when deciding whether to terminate a subscriber for repeat infringement, Cox considered the subscriber’s monthly payments", it continues. "To the district court, this demonstrated the requisite connection between the customers’ continued infringement and Cox’s financial gain. We disagree. The continued payment of monthly fees for internet service, even by repeat infringers, was not a financial benefit flowing directly from the copyright infringement itself". 

And so, while Cox remains liable for copyright infringement, the damages it needs to pay will need to be reconsidered now it is only liable for contributory and not vicarious infringement. Needless to say, the ISP will be hoping that that clarification will result in a considerable cut in the total damages bill. 

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Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.

Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.

👉 Click through to see the current selection.

ONE LINERS

Sam Mendes’ Beatles biopics, Black lives In Music, Wolf Alice + more

DEALS 

What did we learn from Beatles documentary ‘Get Back’? That people are willing to watch a huge amount of Beatles content. So now the band’s Apple Corps company has agreed a deal with Sony Pictures, director Sam Mendes and his Neal Street Productions company to make four biopics - each told from a different band member’s perspective. “I’m honoured to be telling the story of the greatest rock band of all time and excited to challenge the notion of what constitutes a trip to the movies”, says Mendes. The films are scheduled for release in 2027.

Warner Music’s artist and label services division ADA Worldwide has signed a new global distribution deal with South Coast Music Group. “SCMG is excited to begin our partnership with ADA”, says founder Arnold Taylor. “Their goals, persistence, drive and perseverance match our SCMG brand. This will only strengthen our journey to success we are embarking on!”

Wolf Alice have signed a new record deal with Sony Music’s Columbia Records, according to the Independent. The band were previously signed to Universal-aligned indie label Dirty Hit. 

APPOINTMENTS 

Warner Music’s Atlantic Records in the US has promoted Erica Bellarosa to Head Of Business Affairs and General Counsel. “It’s an honour to be leading a team that I’ve had the privilege of being a part of for nearly the entirety of my professional career”, she says. “I’ve grown and learned from the best in the business, and I'm THRILLED to contribute to the incredible legacy of Atlantic Records”.

Black Lives In Music has appointed new board members Janeace Thompson, Kienda Hoji, Orphy Robinson, Chair James Joseph and Vice Chair Moses Oyediwura. “Black Lives In Music is an organisation well placed to hear the voices of those integral in creating this rich universe of creativity”, says Joseph. “I am honoured and excited to be an integral part of advocating a guided and informed response to offer effective change and much needed support to make a difference for positive development in our musical community and wider cultural landscape”.

INDUSTRY EVENTS

Mothers In Music has announced that it will hold its first Mothers In Music All-Dayer at The Mount Without in Bristol on 7 Mar, featuring performances and discussion on balancing motherhood with a career in music. “We aim to bring about change so that women will be able to be both mother and musician simultaneously, building creative and professional practice that brings together these brilliant skillsets”, says event host Alice Ballantine Dykes. “Part of the group's ambition is to create more inclusive events so that women do not ‘drop off the radar’ once they become parents”. More info here.

DIGITAL 

Sure, you can wait all year for Spotify Wrapped to tell you what music you listened to, but now Apple Music has updated its Replay feature to allow you to reminisce on a monthly basis. Users of the streaming service can find out what music they’ve been enjoying here. 

AWARDS

Just when you think there can’t possibly be any more BRITs performances to be announced, one more is added to the list. Calvin Harris and Ellie Goulding are set to take the stage together for the first time. Harris shouts,  "Can't wait for a VERY SPECIAL performance with Ellie!” You’ll get to see it on 2 Mar. 

RELEASES

Kasabian will release new album ‘Happenings’ on 5 Jul. Out now is first single ‘Call’. 

MGMT have released new single ‘Dancing In Babylon’ featuring Christine And The Queens. Their new album ‘Loss Of Life’ is out on 23 Feb.

Bullion has released new track ‘A City’s Never’ featuring Panda Bear. His new album ‘Affection’ is out on 26 Apr.

Real Estate have released new single ‘Flowers’. Their new album ‘Daniel’ is out on 23 Feb. 

Kneecap have announced that they will be releasing their debut album ‘Fine Art’ on 14 Jun. Out now is new single ‘Sick In The Head’. 

Drahla have released new single ‘Second Rhythm’. New album ‘Angeltape’ is out on 5 Apr and they will be touring the UK in June. 

Káryyn has released new single ‘The Real’. Her new EP ‘Calm Kaoss!’ is out on 22 May.

Universal splurges almost quarter of a billion dollars to buy KKR out of Chord Music

Universal Music has taken a minority stake in Chord Music Partners, which was founded by investment firms KKR and Dundee Partners in 2021 to buy up music catalogues. The major music company paid $240 million for a 25.8% interest, giving Chord a valuation of $1.85 billion. 

Universal Music boss Lucian Grainge says that “finding partners who share our passion for identifying iconic songs and recordings that will stand the test of time and deliver long-term growth is essential”. Having found such a partner, he and his team now “look forward to creating maximum commercial and creative value for the songwriters and artists in Chord and building for the future”.

Among the artists and songwriters whose work is included in the Chord catalogue are The Weeknd, Ryan Tedder, David Guetta, Lorde, Kid Cudi, Diplo, Ellie Goulding, and John Legend.

As equity funds have become increasingly interested in buying up music rights, they have often been seen as competitors of traditional record labels and music publishers. Although they have also become clients - with traditional music companies often being hired to manage the acquired rights - and partners who can collaborate on big money acquisitions. 

Or, in this case, both. As part of this deal, Chord’s song rights will be administered through Universal Music Publishing Group and recorded music through the major’s Virgin Music Group. And UMG and Chord will work together on future acquisitions. 

“We’re THRILLED to be partnering with Universal Music Group and embarking on this next exciting chapter for Chord”, says Dundee Partners Sam Hendel. “By combining a best-in-class financial acquisition vehicle with the world’s leading music company, we are creating both a premiere platform for music investment as well as a permanent home for premieree artist’s legacies and their iconic cultural works”.

Once the Universal deal is completed, KKR will exit the business, with Dundee becoming sole owner of the remaining 74.2% stake in the business.

KKR’s Jenny Box comments: “We are grateful to have had the opportunity to collaborate with many leading artists and to create significant value for our investors by building Chord into a differentiated and scaled portfolio. We believe that Dundee and UMG will drive further value creation for artists and that they share our commitment to being respectful stewards of artists’ music”.

Setlist Podcast: When arts funding and politics collide

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss questions and potential legal action over the politicisation of arts funding, as Kneecap are denied money by the British government and Arts Council England issues new guidance for anyone thinking of being controversial, plus the legal battle over royalties currently brewing between MLC and Pandora, and more.

🎧 Click here to listen - or search for 'Setlist' wherever you normally listen

Supertramp in court over song royalties dispute 

Former members of Supertramp are in court in California this week in a legal battle over song royalties. Dougie Thomson, John Helliwell and Bob Siebenberg - all members of the classic Supertramp line-up of the 1970s and early 1980s - accuse former bandmate Roger Hodgson of reneging on a 1977 agreement to share revenue stemming from the band's songs. 

A legal rep for Hodgson, Alan S Gutman, insists that agreement was never a permanent arrangement. According to Law360, he told the court yesterday, "They wanted perpetuity, they didn't get it from Roger Hodgson. There is no document, no agreement that you are going to see during the course of this trial that says they have a right to receive money from Roger Hodgson from a portion of his songwriting royalties forever". 

"Unlike Mr Hodgson's song that was called 'Give A Little Bit', he's already given a lot", the attorney continued. "There's nothing that says they're entitled to a portion of the songwriting royalties forever". 

Hodgson co-wrote Supertramp's songs during the band's heyday with fellow founder member Rick Davies. However, via that 1977 agreement the two songwriters committed to share the royalties that those songs generated with their other bandmates, who would otherwise only receive royalties on the recordings side. 

According to Thomson, Helliwell and Siebenberg, they received the payments they were due under that agreement for decades, but then - several years ago - they abruptly stopped. 

They filed their lawsuit in LA in 2021, naming both Hodgson and Davies, as well as publishing companies Delicate Music and Universal Music Publishing, and US collecting society ASCAP, as defendants. However, Davies subsequently settled the dispute, and both Universal and ASCAP were dismissed as defendants. 

Countering the argument that Hodgson was able to cancel the 1977 agreement whenever he liked, a legal rep for Thomson, Helliwell and Siebenberg told the court that "every other post-1977 document says [the same thing]. Namely, that the 1977 sharing arrangement was meant to last forever".

The trial continues.

Viagogo to pay out £90,000 compensation in Swiss consumer rights settlement 

Viagogo has reached a settlement with Swiss consumer rights organisation FRC which will see the often controversial secondary ticketing company make changes to its website in the country and pay 100,000 Swiss francs (about £90,000) in compensation to ticket buyers. 

The settlement has been welcomed by FEAT, the pan-European campaign against for-profit ticket touting. However, FEAT Director Sam Shemtob noted that the fact it required six years of legal work "highlights the difficulty of hauling uncapped ticket resale sites through the courts".

In return for the FRC withdrawing legal action, Viagogo has committed to make a number of changes to its site in Switzerland. These are similar to changes it has already been forced to make in a number of other countries due to the intervention of regulators or lawmakers. 

The changes include clearly stating that Viagogo is a resale marketplace in all three of Switzerland's national languages and English; providing better transparency around ticket prices and seating information; clearly identifying professional resellers; and reducing the number of pop-up windows that pressure consumers into completing a transaction. 

It will also pay compensation to the 807 ticket buyers who lodged complaints with the FRC prior to 5 Feb this year, with the payouts totalling 100,000 Swiss francs, which equates to about £90,000. 

FRC first went legal against Viagogo in 2017, lodging a criminal complaint with the Geneva public prosecutor. It was prompted to act after receiving more than 100 complaints from consumers who raised many of the usual concerns about Viagogo. That included the lack of transparency over pricing, tactics employed to pressure consumers into making quick buying decisions, and language that suggests people are buying from official sellers instead of touts. 

Viagogo has its European HQ in Switzerland, so this dispute was very much on its home turf. The resale site has come under criticism from the music community, consumer rights groups and politicians in multiple countries, with various campaigns having called for and - in some cases achieved - much tighter regulation of online touting. 

Within the European Union it is hoped that new regulations in the Digital Services Act will help. Noting that in his statement on the Swiss settlement, Shemtob added, "For consumers in the EU, we hope and expect the new Digital Services Act, which requires online marketplaces to improve transparency and desist from pressure buying tactics, will be robustly enforced".