From Courts To Courtrooms; 14 NBA Teams Face Copyright Lawsuits

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In a significant legal development, fourteen NBA teams are currently embroiled in lawsuits alleging copyright infringement related to their utilization of music in promotional videos distributed via social media platforms and the official NBA.com website.

Initiated by Kobalt Music Publishing and Artist Publishing Group, these lawsuits underscore the intensifying scrutiny surrounding unauthorized use of copyrighted music in digital media. This legal confrontation reflects the broader tensions between the sports and music industries regarding intellectual property rights. The case not only illuminates the meticulous enforcement of music rights but also highlights the critical need for organizations to ensure proper licensing in an era where digital content is increasingly prevalent.

Case Background

a) The Plaintiffs and Defendants

The lawsuits were filed in the U.S. District Court for the Southern District of New York on July 18, 2024. The plaintiffs include Kobalt Music Publishing America Inc., the exclusive licensing agent for all the songs in question, and Artist Publishing Group, the publishing arm of Mike Caren’s indie label Artist Partner Group, along with various other plaintiffs (“Plaintiffs”). The defendants are some of the NBA’s most prominent teams from the 2023-2024 season, including New York Knicks, Cleveland Cavaliers, Denver Nuggets, Minnesota Timberwolves, Atlanta Hawks, Indiana Pacers, Miami Heat, New Orleans Pelicans, Orlando Magic, Philadelphia 76ers, Phoenix Suns, Portland Trail Blazers, Sacramento Kings, and San Antonio Spurs (“Defendants”).

b) Allegations of Copyright Infringement

The lawsuits assert that the Defendants used copyrighted music in their promotional videos without obtaining the required licenses, authorization, or consent from the Plaintiffs. These videos were posted on platforms such as TikTok, Instagram, Facebook, YouTube, X (formerly Twitter), and the NBA’s official website. The complaints point out that the teams are well aware of U.S. copyright laws, given their own content’s copyright status. Nonetheless, the Plaintiffs claim that the Defendants intentionally and knowingly violated their intellectual property rights.

For example, the complaint against the New York Knicks identifies 23 allegedly infringed tracks, including Dua Lipa’s “Don’t Start Now” and Busta Rhymes’ “Put Your Hands Where My Eyes Could See.” The Orlando Magic’s complaint lists 37 tracks, such as Major Lazer’s “Lean On” featuring MØ & DJ Snake and a song by former NBA player Shaquille O’Neal. The Cleveland Cavaliers are accused of infringing on 16 songs, including the 3LAU remix of Ariana Grande’s “Into You” and Jason Derulo’s “Swalla” featuring Nicki Minaj and Ty Dolla $ign. The Indiana Pacers’ complaint involves just one track—Austin Mahone’s “Mmm Yeah” featuring Pitbull.

The Plaintiffs assert that the Defendants have not obtained the necessary licenses or permissions for these uses, constituting direct, contributory, and vicarious copyright infringement. The Plaintiffs claim that, although being fully aware of the legal restrictions for such usage, the Defendants intentionally utilized the copyrighted works of the Plaintiffs in order to “increase viewership” and “engage their fanbase”.

This legal action highlights the complexities of incorporating licensed music into social media content without permission in various videos intended to promote the team, especially for commercial purposes. Although social media platforms provide extensive libraries of licensed music for user-generated content, these permissions do not extend to commercial or promotional videos created by brands, which necessitate separate synchronization licenses. This distinction has become a critical issue as music rights holders intensify their efforts to address unauthorized usage. Recent examples, such as the litigation involving Bang Energy and a minor league baseball team for the unlicensed use of copyrighted music, highlight a growing trend of enforcement in the music industry.

Legal & Financial Implications Of The Lawsuit

Each lawsuit is aiming up to an amount of $150,000 per violation for copyright infringement. With the scale of alleged breaches, the total awarded damages could soar into the millions for each team. The Plaintiffs argue that by securing licenses for reproducing, distributing, and publicly performing the videos, the NBA teams/Defendants inadvertently spurred social media platforms to engage in direct copyright violations.

As of July 22, numerous videos identified in the lawsuits were no longer available for viewing on any social media platforms. This removal may indicate that the NBA teams are either conceding to the allegations or adopting a precautionary measure to reduce potential legal exposure.

These lawsuits are part of a larger trend of copyright infringement actions initiated by leading entities in the music industry. Recently, major record labels—Sony Music Group, Universal Music Group, and Warner Music Group—sued the creators of AI music generators Suno and Udio, alleging unauthorized use of copyrighted music. The labels, joined by ABKCO Music, also filed a lawsuit against Verizon, accusing it of facilitating widespread copyright infringement by its subscribers. This legal action highlights a significant intensification in the music industry’s fight to protect intellectual property.

Other notable examples of such efforts also include Sony Music’s action against fitness brand Gymshark for infringing 297 recordings in its advertisements followed by Sony Music’s lawsuit against Marriott International, accusing the hotel giant of willful copyright infringement through its social media conten.

Future Implications

The outcomes of these lawsuits could have significant repercussions for both the sports and music industries, which underscores the importance of proper licensing and compliance with intellectual property laws, particularly in the context of digital media.

A favorable ruling for the Plaintiffs could impose substantial financial penalties on the NBA and necessitate a reevaluation of how teams manage music usage in their digital content. This may lead to the adoption of more stringent licensing practices to avert future legal challenges.

For NBA teams, this means reassessing their use of music in promotional content and ensuring that all necessary licenses are obtained. For the music industry, these lawsuits reinforce the importance of enforcing intellectual property rights in the digital age. This also serves as a stern warning to other entities that the unauthorized use of copyrighted music across social media and digital platforms will be met with stringent legal consequences.

Conclusion

The lawsuits against the fourteen NBA teams/Defendants identifies the persistent and evolving conflict between the sports and music industries over the protection of intellectual property rights. As digital content grows in significance for marketing and fan engagement, it becomes increasingly vital for all parties to adhere to rigorous licensing practices and uphold copyright laws.

The resolution of these legal disputes will likely have far-reaching implications for how music is integrated into not only sports-related content but all digital content. An order in favor of the Plaintiffs could establish new standards for licensing and usage which could lead to a more structured and formalized approach to music rights management, impacting not only the sports industry but also influencing broader sectors that rely on digital content.

Furthermore, the outcome may serve as a critical benchmark for how intellectual property is handled in the digital age, reinforcing the necessity for clear and enforceable agreements in an increasingly complex digital landscape.

 

 

Authors: Shalini Bajpai, Ambika Chaudhary & Dev Agarwal

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