Tidal Facing a $5 Million Lawsuit
Tidal may be in trouble again, as Jay Z’s streaming service is facing a $5 million lawsuit from Yesh Music, LLC and John Emanuel who plays in the band the American Dollar. For a service which was promising to take care of its artists and to pay every artist with a higher royalty rate than any other streaming service, it’s not a good sign.
The lawsuit, which was filled over the weekend, claims that Tidal streamed 116 of the band’s copyrighted songs without paying back any royalty payments in the process. Lawyer Richard Garbarini declared to Complex that the band has received no royalties for their work until this past November and has asked to have their music removed from Tidal, but they are currently still on the service. But there’s more, Tidal ‘reportedly used faulty numbers to make payments to artists and may have undercut the money they owed to artists by as much as 35 percent, according to the filed documents’. The members of the band claim they never received detailed reports showing the usage of every song on the service
According to Complex, Tidal claims to be up to date on royalties, as they explained in this statement:
‘TIDAL is up to date on all royalties for the rights to the music stated in Yesh Music, LLC and John Emanuele’s claim and they are misinformed as to who, if anyone, owes royalty payments to them. As Yesh Music, LLC admits in their claim, TIDAL has the rights to the Master Recordings through its distributor Tunecore and have paid Tunecore in full for such exploitations. Their dispute appears to be over the mechanical licenses, which we are also up to date on payments via Harry Fox Agency our administrator of mechanical royalties.
The entire catalogue in question streamed fewer than 13,000 times on TIDAL and its predecessor over the past year. We have now removed all music associated with Yesh Music, LLC and John Emanuele from the service. This is the first we have heard of this dispute and Yesh Music, LLC should be engaging Harry Fox Agency if they believe they are owed the royalties claimed. They especially should not be naming S Carter Enterprises, LLC, which has nothing to do with Tidal. This claim serves as nothing other than a perfect example of why America needs Tort reform.’
It was expected that Tidal would refute the claims but how is this possible? How Tidal could get away with so much?