France's Believe faces $500 million copyright dispute with UMG in the U.S

(Reuters) - Shares in French digital music company Believe rose 1.6% in a delayed start to trading on Tuesday after Universal Music Group (AS:UMG ) filed a copyright infringement complaint in the U.S., seeking damages of at least $500 million (459.09 million euros).

UMG , the music arm of French tycoon Vincent Bollore's media and entertainment empire, alleges that Believe and its U.S. unit TuneCore have profited from the distribution of infringing copies of copyrighted recordings.

"Their (Believe) illegal practices are not limited to cheating artists on major labels but artists on independent labels as well-including artists on the independent labels within the trade bodies of which Believe is itself a member," a UMG spokesperson said.

Believe did not respond to Reuters' request for comment.

The plaintiffs argue that Believe has been distributing copyrighted material by changing the name of the artists or by publishing "sped-up" versions of original songs.

Tracks made by Kendrick Lamar, Ariana Grande, Justin Bieber and Lady Gaga are distributed by Believe under fake names like "Kendrik Laamar", "Arriana Gramde", "Jutin Bieber" and "Llady Gaga", plaintiffs say in their court filing.

Based in Paris, where it listed in 2021, Believe was founded in 2005 by former Vivendi (OTC:VIVHY ) executive Denis Ladegaillerie.

The firm operates in 50 countries, and it has expanded its market share by acquiring other music labels in both Europe and the Americas, with the former bringing in most of the group revenue.

Its music catalogue appears on social media platforms and streaming services such as TikTok, YouTube, Spotify (NYSE:SPOT ), and Apple (NASDAQ:AAPL ) Music.



The complaint has been filed in the United States District Court for the Southern District of New York.

(1 euro = $1.0891)

Source: Investing.com