Soundcloud Lawsuits for Massive Copyright Infringement
Soundcloud lawsuits for massive copyright infringement, this is the story going around according to numerous executives from the Recording Industry Association of America (RIAA), Universal Music Group, and Sony Music Entertainment.
“They don’t like SoundCloud’s attitude, they don’t like the pace of the talks. I’m not saying this is another ‘legal jihad,’ but lawsuits will be filed.” a source told DMN, with aimed reference at SoundCloud’s CEO, Alexander Ljung.
The Soundcloud Lawsuits comes ahead of an anticipated premium subscription launch.
One of the issues at hand is Alexander Ljung’s policy on maintaining a free tier, which is similar to Spotify’s ‘freemium funnel’.
“There are 3 billion people online, you’re never going to all get those into subscription, it’s just not going happen. Some people will come through ads, some through subscription. That’s why I’m choosing to have both.” Ljung stated recently at Midem
“But from the standpoint of mega-labels like UMG, that’s not necessarily his choice to make. And neither are the terms of their contracts. The DJs are getting strikes for infringement, and that’s affecting their accounts. They’re trying to avoid that and thinking about other places to upload.” Said a source
DJs who are uploading mixes are having their content blocked thanks to the copyright claims from companies such as Sony.
As far as the indie labels such as Merlin and A2IM go it’s still unclear where they stand on the issue.
At this point regarding the The Soundcloud lawsuits, it’s unclear where indie labels, including consortia A2IM and Merlin, will land in the matter.
The Soundcloud lawsuits news comes just as indie label Merlin has made a deal with SoundCloud, which could potentially bring in twenty thousand new label participants. This is good news for Soundcloud although it’s not clear that Merlin has signed a bonafide deal as yet.
“I’m excited to announce our largest independent label partnership to date with Merlin, the global rights agency for the independent label sector.” Ljung said.
The Soundcloud lawsuits will for sure be an interesting sequence of events to watch unfold.