Triller didn’t end up completing an IPO in 2022. Now it’s being sued by Universal Music Group
Triller allegedly being sued by Popular music group for unpaid license fees.
On Thursday (January 5), UMG filed a lawsuit against US-based rival TikTok claiming it has failed to pay licensing fees over the past three quarters.
The lawsuit also claims that the company failed to provide a quarterly usage report outlining the lead expert’s music usage on the Triller app.
This news is report via Diversityreported that UMG said in its complaint that it had also terminated its agreement with Triller.
Follow breed of Reportedly, the complaint alleges that Triller agreed to pay nearly $3 million to Universal for licensing and use of its former catalog, and that these payments are expected to be made on a monthly basis. quarter within two years.
Triller missed the last three payments, according to the complaint.
Today’s story happens almost two years after Triller signed a renewal license agreement with Popular music group.
In the weeks leading up to that agreement, Universal accused Triller on “shamefully withholding payments owed to our artists” as well as “rejecting[ing] for licensing negotiations in the future”.
Today’s news also comes after three months Triller confirmed that it has received a binding investment of US$310 million from GEM (Global Emerging Markets), an alternative investment group based in Luxembourg.
Confirming the deal, Triller said that it expected to do a public listing on the stock exchange in the fourth quarter of 2022. That public listing did not come in the fourth quarter. Triller also stated announced at the time that it was on track to hit $100 million in revenue by 2022.
In June, Triller announced that it filed a Form S-1 with the SEC for an IPO on Nasdaq. At the time, it stated that its listing was “It is expected to be approved in Q3″.
That June announcement itself was made shortly after Triller announced it was being phased out is different IPO plans – this time through a Merger with Seachange – was originally scheduled to “close in Q1 2022”.
Universal’s legal action after a lawsuit pay the degree Sony Music Entertainment in August 2022, when SME sued Triller for allegedly failing to pay “millions of dollars” in contractual licensing fees.
official react for the SME complaint filed in December, Triller confirmed that it was unable to pay the SME for various reasons.
“Triller admitted that they did not pay for [SME] since March 2022 and that [SME] notified Triller on July 22, 2022 that Triller had breached the agreement,” the company said in its response, filed December 5 and viewed by MBW.
The SME alleges Triller shopped heavily at a time when no payments were made, and highlighted several Triller acquisitions around a time when Triller failed to pay licensing fees.
Acquisitions include the March 28 purchase of influencer marketing software platform Julius and the April 25 purchase of Fangage, a platform for creators to host and sell content to their fans. surname.
Triller’s acquisition spending was also mentioned in Universal’s complaint this week.
According to the lawsuit, “During the same period in which Triller failed to meet its payment and reporting obligations, it was reported that Triller spent a substantial amount of money acquiring companies.”
Universal’s legal action against Triller follows last month’s news that the platform was in deleted category music licensed by Merlinrepresent prominent independent brands and distributors.
In a statement sent to MBW on December 2, a spokesperson for Triller confirmed, “that we are removing Merlin music”, but stated that “out of the big three labels, sony is the only one we don’t have a current deal with and haven’t renewed.”
“We have a dispute with sony more than $2 million, a dispute will be resolved in the court system,” they added.
Triller also said last month that it was explore revenue sharing agreements with key labels.
According to a Triller spokesperson, the platform is currently “evaluating” what it calls “Spotify-like model,” they added, would include “revenue sharing versus large cash payments when our agreements are renewed.”
In a statement given to Diversitya Triller spokesman called the new legal action brought by Universal “nothing more than a minor contractual dispute with the publisher, not the studio, and does not have any impact on triller or its operations.” company’s business”.
It added: “This is a dispute about publishing a very small percentage of the catalog and normal business of the music industry and about a small amount of money.
“This will be decided at an appropriate place in the next few years and we clearly believe that we are right and that the courts will be in our favor. It’s a simple case that almost every social network faces in one form or another. This is not the first time and will not be the last but is similar to previous disputes of [this] by nature they tend to settle down quietly and end up doing little.”
Global Music Business
