LyricFind Files $1 Billion Lawsuit Against Musixmatch Over Alleged Market Monopolization
LyricFind has filed a lawsuit exceeding $1 billion against Musixmatch, alleging anticompetitive practices and Sherman Act violations. The dispute centers around lyrics licensing and distribution rights, particularly involving Spotify and Warner Chappell Music.
According to the 69-page lawsuit filed in California federal court, the conflict escalated in March 2024 when LyricFind was close to replacing Musixmatch as Spotify's lyrics provider. Spotify had reportedly completed most of the technical integration for the switch.
Key allegations include:
- Musixmatch secured an exclusive licensing deal with Warner Chappell Music, allegedly paying a premium to block LyricFind's access to the catalog
- TPG and Musixmatch allegedly pressured DSPs to remove lyrics from competitors
- Spotify halted its transition to LyricFind in April 2024 due to the Warner Chappell situation
- iHeartMedia terminated its LyricFind partnership and now pays Musixmatch five times more for lyrics
LyricFind claims these actions threaten its business viability and will lead to:
- Higher prices for consumers
- Limited choices
- Fewer songs with lyrics and translations
- Reduced innovation in the industry
Musixmatch responded to the lawsuit, stating: "We believe these are meritless accusations" and emphasized their 15-year track record of providing "the world's highest-quality lyrics, rights, and data platform."
The case remains ongoing, with LyricFind seeking damages exceeding $1 billion after automatic trebling, based on their pre-incident enterprise value and current business risk assessment.
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