Lawsuit Challenges Primary Wave's $90 Million James Brown Estate Deal Over Exclusive Rights
Primary Wave faces a legal challenge over their $90 million acquisition of James Brown's catalog, with The Pullman Group filing a lawsuit claiming breach of contract.
James Brown singing in concert
The lawsuit, filed in Manhattan federal court on November 15, stems from a 1999 agreement between James Brown and The Pullman Group. This agreement granted Pullman exclusive rights to refinance or sell Brown's assets, including music copyrights, royalties, and related assets until 2059.
Under the 1999 deal, The Pullman Group securitized Brown's assets through a Pullman Bond offering, providing Brown with $26 million upfront. In exchange, Pullman received exclusive rights to arrange any future refinancing or asset sales of Brown's assets following the bonds' recoupment.
The controversy arose when Primary Wave acquired Brown's master royalty income, name/likeness rights, and publishing rights for $90 million in December 2021. The Pullman Group alleges this deal was made secretly, bypassing their exclusive rights by using Shot Tower Capital to arrange the transaction.
The lawsuit seeks:
- 12.5% of the Primary Wave transaction value from the Brown defendants
- $250,000 in liquidated damages
- Contractual costs and legal fees
- Interest from the breach date
- Compensatory and punitive damages from Primary Wave and Shot Tower Capital
The Pullman Group maintains their rights were properly recorded with the U.S. Copyright Office, arguing Primary Wave and Shot Tower Capital should have been aware of the existing agreement.
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