X Corp. Files Antitrust Lawsuit Against Music Publishers

Elon Musk's social media platform, X Corp., has filed a federal antitrust lawsuit against 18 major music publishers and the National Music Publishers’ Association (NMPA). The lawsuit, submitted to the U.S. District Court for the Northern District of Texas, accuses the publishers of colluding to force X into purchasing industry-wide music licenses at inflated rates. The complaint alleges that the publishers, including Sony Music Publishing, Universal Music, and Warner Chappell, have engaged in a coordinated effort to leverage their collective market power, denying X the ability to negotiate individual licensing agreements.

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The lawsuit claims that X has been subjected to a barrage of over 200,000 Digital Millennium Copyright Act (DMCA) takedown notices, which the platform argues were weaponized to coerce it into accepting unfavorable licensing terms. X asserts that this campaign has resulted in the suspension of more than 50,000 users, significantly harming its user base and advertising revenue.

TorrentFreak

The conflict between X and the music publishers has been ongoing, with the NMPA previously suing X in 2023 for copyright infringement related to nearly 1,700 songs. Despite efforts to reach a settlement, including claims of substantial progress in negotiations, the two parties failed to finalize an agreement. X maintains that it is the only major social media platform that does not license music, a situation it attributes to the publishers' refusal to negotiate individual licenses.

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David Israelite, President and CEO of the NMPA, criticized X's lawsuit, stating, “X/Twitter is the only major social media company that does not license the songs on its platform. We allege that X has engaged in copyright infringement for years, and its meritless lawsuit is a bad faith effort to distract from publishers’ and songwriters’ legitimate right to enforce against X’s illegal use of their songs.” The NMPA and the named publishers have not publicly responded to the specific allegations of collusion.

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Critics of X's lawsuit argue that it may serve as a distraction from its own copyright infringement issues. The NMPA's previous lawsuits against X highlight the ongoing tension between the platform and the music industry, which has historically sought to protect its intellectual property rights. Some observers suggest that X's claims of collusion may be an attempt to shift blame for its licensing challenges onto the publishers.

Variety Magazine

X is seeking unspecified damages and a court order to compel the publishers to negotiate individual licensing agreements. The outcome of this lawsuit could have significant implications for the music industry and social media platforms, particularly regarding how licensing agreements are structured and enforced in the digital age.

Variety Magazine

• “X has been denied the ability to acquire a U.S. musical-composition license from any individual music publisher on competitive terms,” — X Corp. Complaint

Reuters

• “The music publishers collude, rather than compete, to attempt to force X to take industrywide licenses, harming not just consumers and X users …” — X Corp. Complaint

Billboard

This lawsuit marks a significant escalation in the ongoing legal battles between X and the music publishing industry, raising questions about the future of music licensing in the digital landscape.

Hollywood Reporter