Legal Notes: X Corp Battles Music Giants Over Licensing Dispute

Elon Musk's X Corp is suing major U.S. music publishers for alleged antitrust violations, claiming they colluded to inflate licensing rates. The lawsuit highlights X's struggle to secure competitive music licensing. X seeks court intervention for fair licensing and compensation for revenue losses from takedown pressures.

In a bold legal maneuver, Elon Musk's X Corp has launched a lawsuit against 18 major music publishers and a prominent U.S. music industry group, accusing them of antitrust violations. X claims these entities colluded to force exorbitant licensing fees onto the platform, stifling competition.

The lawsuit, filed in a Texas federal court, alleges the music publishers, including industry giants like Sony, Universal, and Warner Chappell, denied X the chance to negotiate individual licensing agreements, a move X argued violated U.S. antitrust law. David Israelite, CEO of the National Music Publishers' Association, countered that X unlawfully benefits from unlicensed music.

X Corp contends that coordinated weekly takedown notices aimed at posts with copyrighted music are a tactic to pressure the platform into compliance with unfavorable terms. The company seeks restitution for lost advertising revenue and a fair music licensing landscape. Despite pushback from the music industry, X Corp remains firm in its legal battle.

(With inputs from agencies.)