For brands seeking to create impactful content, music plays an invaluable role. It sets the tone, mirrors the visual content cohesively, and subsequent engages audiences. However, using music without proper licensing can lead to serious legal and financial repercussions, from cease and desist orders all the way to significant lawsuits. In this article, we’ll explore the various legal implications of non-compliant music licensing, providing relevant case studies before highlighting how MatchTune can help you avoid these pitfalls using AI-driven solutions.
Cease and Desist Orders
One of the most immediate legal consequences of using unlicensed music is receiving a cease and desist letter. Rights holders, often through their legal teams, will issue these letters demanding that you stop using their music in your content, and remove any existing content which infringes. While a cease and desist doesn’t automatically lead to a lawsuit, failing to comply can escalate the issue.
Lawsuits and Financial Penalties
If a cease and desist is ignored or if the infringement is severe, rights holders may be inclined to file lawsuits. In these cases, brands can face serious financial penalties–ranging from thousands to hundreds of millions of dollars–depending on the value of the music and the duration of its use.
In 2019, for example, Peloton faced a $150 million lawsuit from several music publishers for using thousands of songs in their fitness classes without proper licensing. Eventually settled, the case underscored the costly consequences of ignoring copyright laws, and set a firm precedent for future infringements.
More recently, a number of lawsuits have been issued against some of the world's most acclaimed companies. In May 2024, Sony Music sued Marriott Hotels for alleged copyright infringements in the music featured on their social media posts. Just two months later, 14 NBA teams were sued for similar infringements, before a September lawsuit saw pharmaceutical giants Johnson & Johnson sued by Sony and APM. While these are just a few of many examples, they highlight the severity of copyright infringement claims in the modern music licensing space.
With claims creeping well into the 9-figure range in some of these lawsuits, ensuring compliance is far more than a minor consideration for brands looking to maintain an online presence. It's essential to avoid a fatal financial hit.
Reputation and Brand Damage
Less tangible than lawsuits, but arguably just as severe, is the reputational damage suffered by a brand who have been incompliant within their music usage. Today, prospective consumers are increasingly cognizant of both reputation and copyright issues, and any brand seen as disrespecting artists and their work could suffer a significant loss of trust and loyalty.
How MatchTune Can Help You Ensure Compliant Music Licensing
Given the risks involved, it’s essential for brands to ensure their music is fully licensed for use across all content. This is where MatchTune can help. Our AI-powered technology simplifies the process of ensuring compliance, whether it's replacing vulnerable music in past content or providing licensed, zero-claims music for future videos, so you never have to worry about legal roadblocks or expensive lawsuits.
By leveraging advanced AI, MatchTune ensures that the music you choose is perfectly suited to your brand’s needs, while being fully compliant with all licensing requirements. This allows you to focus on creating engaging content, knowing that your brand is legally protected.
Looking to ensure compliance? Get in touch here.