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Elon Musk’s X Corp has launched a high-profile lawsuit accusing major music publishers in the USA of cartel-like behavior. The suit targets the National Music Publishers’ Association (NMPA), alleging that they coordinated nearly 500,000 copyright takedown requests against the platform to force inflated licensing fees. While X claims this exposes anti-competitive collusion, the NMPA calls the lawsuit “meritless” and a distraction from its legitimate rights to enforce copyright.
This legal action follows a 2023 lawsuit filed by music publishers seeking $250 million in damages from X for unlicensed use of thousands of songs. Despite prior settlement talks, X has taken a combative approach, accusing the music industry of wrongdoing while other tech giants like Meta, YouTube, and TikTok have ongoing licensing deals with the NMPA.
What you need to know:
- The Peloton precedent:
X claims publishers block direct deals, citing Peloton’s failed 2019 negotiations. Yet Peloton faced separate lawsuits from independent publishers and later praised its deal with the NMPA, contradicting X’s conspiracy theory. - Takedown spike explained:
X highlights a surge in takedowns since 2021 as proof of coordinated attacks. But experts suggest this simply reflects the NMPA finally acting collectively to enforce copyrights after years of fragmented efforts. - Golf course conspiracy?:
X alleges publishers coordinated their strategy at social events like golf tournaments and industry galas. However, collective licensing is a practical necessity when songs have multiple writers and publishers, not secretive collusion.
At its core, X disputes the need to license most music compositions, arguing it should pay only for limited “slots” with competitive pricing. Yet with hundreds of millions of user-uploaded videos featuring copyrighted songs, the platform struggles to control content it monetizes, sparking half a million copyright claims. The lawsuit reflects broader tensions over digital music licensing, rights enforcement, and the evolving economics of platforms that rely heavily on user-generated content.
