Universal Music Sues Believe for $500M Over Copyright Infringement Claims

Universal Music Group NV has filed a lawsuit against French record label Believe SA seeking damages of at least $500 million over copyright infringement.

The Netherlands-based record label argued that Believe’s growth and profitability in recent years was achieved by “operating as a hub for the distribution of infringing copies of the world’s most popular copyrighted recordings,” according to a complaint filed in Manhattan’s Southern District of New York.

Universal Music, the world’s largest record label that represents singers including Taylor Swift and Drake, has been advocating for artists to be more fairly compensated and to better reward songs that fans actively seek out on platforms. Last year, it filed a lawsuit against Anthropic PBC alleging that the Amazon.com Inc.-backed AI firm was involved in widespread infringement of its copyrighted music lyrics.

Spokespeople for Believe didn’t immediately respond to requests for comment.

The record label alleged that names of Believe’s artists like “Llady Gaga” and “Jutin Biber” are often minor variants on Universal Music’s own singers. It claimed that the French label also distributes “overtly infringing” versions of original tracks by famous artists with notations that they are sped-up or remixed.

Believe, which was founded in 2005, helps independent musicians and small labels distribute and market their work on streaming platforms.

The Paris-headquartered Believe has been involved in takeover talks this year. Its founder Denis Ladegaillerie partnered with investment firms to offer to buy out the record label in a deal that valued it at €1.46 billion ($1.6 billion) in February. Warner Music Group also expressed interest in Believe but later decided against bidding for the company.

Universal Music counts billionaire hedge fund manager Bill Ackman among its biggest investors. The complaint against Believe and TuneCore Inc. was filed by Universal Music along with ABKCO Music & Records and Concord Music Group.

Top photo: Universal Music Group NV has filed a lawsuit against French record label Believe SA seeking damages of at least $500 million over copyright infringement. Photographer: Patrick Hertzog/AFP/Getty Images.