Warner Music Group has sued US cookie chain Crumbl, alleging that it constructed its enterprise by “blatant, willful, and repeated copyright infringement.”
The criticism was lodged in a US District Courtroom in Utah on Tuesday (April 22), claiming Crumbl used a minimum of 159 of WMG’s recordings and compositions in promotional movies posted to TikTok and Instagram, the place the cookie firm has 9.8 million and 6.1 million followers, respectively.
“Defendants have misappropriated a minimum of 159 of the preferred and invaluable sound recordings and musical compositions available in the market, utilizing these artistic works to construct Defendants’ model profile and drive huge gross sales to Defendants with out any compensation to Plaintiffs,” the lawsuit stated, which you’ll learn in full right here.
WMG alleges that these works embody recordings or compositions from artists and songwriters, together with Dua Lipa, Bruno Mars, Lizzo, Taylor Swift, Mariah Carey, Ariana Grande, and Beyoncé, with out correct licensing or authorization.
Jason McGowan and Sawyer Hemsley co-founded Crumbl in 2017 with a single retailer in Logan, Utah. The corporate has since grown to greater than 1,000 areas globally, with greater than 29,000 staff, in keeping with its web site.
“Defendants have misappropriated a minimum of 159 of the preferred and invaluable sound recordings and musical compositions available in the market.”
Warner Music Group
In January, Reuters reported, citing individuals acquainted with the matter, that Crumbl’s house owners are exploring a sale that would worth the enterprise at $2 billion, together with debt.
“Our technique proper from the start was social media,” McGowan instructed The Wall Road Journal in December. The newspaper on the time famous that Crumbl has its personal social media group with over 30 employees together with professionals who {photograph} and movie movies.
Warner Music claims Crumbl’s movies are synchronized to an audio observe of a preferred sound recording. “The audio observe typically runs the complete size of the Crumbl Movies and contains probably the most acquainted portion of the sound recording and underlying musical composition, such because the hook or refrain.”
In a single instance cited, a video selling blueberry cheesecake cookies featured the track Blueberry Faygo by Lil Mosey, whereas one other selling yellow sugar cookies used Coldplay‘s hit Yellow. Warner Music additionally cited one other video selling Crumbl’s Kentucky butter cake, which used the track Butter by BTS.
The lawsuit additionally particulars how Crumbl not solely created and posted infringing movies instantly but additionally partnered with social media influencers who acquired “perks and rewards,” and supplied the prospect of “paid initiatives” in alternate for creating content material selling Crumbl merchandise.
“By working with widespread influencers, Crumbl attracts every of those influencers’ followers to Crumbl’s social media pages and to the Crumbl Movies. Crumbl recruits these people—together with, upon data and perception, these featured within the Crumbl Movies — to ‘collaborate’ with Crumbl, whereby individuals are rewarded for selling Crumbl merchandise,” in keeping with the lawsuit.
Moreover, Warner Music claims that Crumbl continued to submit infringing content material months after the music firm despatched the cookie chain operator a cease-and-desist letter in August 2023.
WMG’s lawsuit stated: “Crumbl’s willfulness is additional evidenced by its very personal statements,” with the music big citing a January 2024 TikTok video wherein Crumbl stated: “We had been gonna make a humorous video to advertise Thriller Cookie, however authorized stated we are able to’t use any trending audios.”
The corporate is in search of as much as $150,000 in statutory damages for each infringed work, which might doubtlessly lead to damages of as much as $23.85 million if the court docket grants the utmost penalty for every of the 159 works cited. WMG can also be in search of a everlasting injunction prohibiting Crumbl from additional infringement.
The lawsuit is the newest involving a distinguished music firm taking authorized motion over unauthorized use of music in social media posts.
WMG’s criticism famous that the case bears similarities to lawsuits introduced in opposition to power drink firm Bang Vitality in 2022, when each Common Music Group and Sony Music Leisure received judgments for comparable copyright infringement claims involving unauthorized use of music in social media advertising. Warner additionally sued Bang Vitality in September 2022 after Sony Music scored partial victory in its personal case.
The unauthorized use of copyrighted music and sound recordings on social media advertising have prompted main music corporations to lodge authorized actions in latest months. UMG sued the proprietor of US Tex-Mex restaurant chain Chili’s in October for allegedly infringing its copyrights in quite a few social media posts.
Additionally in October, Sony Music settled a lawsuit in opposition to Marriott Inns over the alleged “rampant” infringement of copyrighted supplies in social media posts.
In one other latest case, Sony Music sued the College of Southern California, alleging the varsity repeatedly and willfully used unauthorized copyrighted music in its social media posts.
Different latest instances embody the lawsuit between the Related Manufacturing Music — collectively owned by Sony Music Publishing and Common Music Publishing Group — and the American Hockey League; the case between Sony Music and US cosmetics model OFRA; and the lawsuit filed by Kobalt Music Publishing, Artist Publishing Group and others in opposition to 14 NBA groups.
Music Enterprise Worldwide
