France's Believe faces $500 mln copyright dispute with UMG in the U.S.
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 music arm of French tycoon Vincent Bollore's media and entertainment empire, 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 Reuters' request for comment.
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.
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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
