LyricFind Files $1 Billion Lawsuit Against Musixmatch Over Alleged Market Monopolization
LyricFind has launched a massive $1 billion+ lawsuit against Musixmatch, alleging anticompetitive practices and Sherman Act violations in the lyrics licensing market.
The dispute centers around a March 2024 incident when LyricFind was close to replacing Musixmatch on Spotify's platform. According to the lawsuit, Musixmatch and its parent company TPG responded by securing an exclusive licensing deal with Warner Chappell Music, effectively blocking LyricFind's access to Warner Chappell's catalog.
Key allegations in the 69-page lawsuit include:
- Musixmatch paid Warner Chappell an excessive premium for exclusive rights
- TPG and Musixmatch pressured DSPs to remove lyrics from competitors
- Forced termination of Warner Chappell's relationship with LyricFind
- Blocked direct licensing attempts between Warner Chappell and streaming platforms
The fallout resulted in:
- Spotify halting its transition to LyricFind in April 2024
- iHeartMedia terminating its LyricFind partnership
- iHeartMedia paying Musixmatch five times more for lyrics services
LyricFind argues this monopolistic behavior will lead to:
- Higher prices for lyrics services
- Limited choices for consumers
- Fewer songs with lyrics and translations
- Reduced innovation in the market
Musixmatch has responded to the lawsuit, stating: "We believe these are meritless accusations" and emphasizing their 15-year track record of providing high-quality lyrics services to customers and partners.
The case is currently pending in California federal court, with LyricFind seeking damages exceeding $1 billion after automatic trebling, citing threats to their business viability.
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