Universal Music Group (“UMG”) has settled a trademark infringement case involving the use of its sub-label Republic Records name. Approximately three years ago UMG sued investment platform OpenDeal which had used the name “Republic” for its music related business. OpenDeal’s Republic allowed consumers to invest in recording artists and earn music streaming royalties by allowing investors to purchase fractional shares in music assets. UMG claimed that its fans would think the OpenDeal’s Republic was affiliated with its highly successful label, Republic Records.
Republic Records has such artists as Taylor Swift, Stevie Wonder, Drake, Arianda Grande and John Legend.
OpenDeal describes itself as a “fractional technology firm specializing in private market investment services”. In 2021 OpenDeal began also offering music NFTs. Before filing the lawsuit, UMG told OpenDeal to “operate its new music related services under a non-REPUBLIC name.” OpenDeal refused to do so and instead decided on fighting UMG in court.
UMG asserted that OpenDeal's use of the name “Republic” caused public confusion with UMG’s Republic Records trademark when OpenDeal began offering its clients an investment opportunity for fractional investing in music. UMG did not have a problem with OpenDeal using the name “Republic” for investment services, as long as it was not being used for music industry products.
In August, 2022, UMG added Ditto Music Pte, Ltd., a blockchain company, as a defendant because it had partnered with OpenDeal on its music related business. UMG claimed that OpenDeal’s Republic was offering its infringing music related services by using Ditto’s blockchain platform Opulous.
OpenDeal and Opulous denied the allegations in UMG’s complaint. In 2022 the judge in the case refused to grant UMG’s request for a preliminary injunction (order) preventing Republic from using the name for its music related business. Usually, a party must meet a high standard to be entitled to a preliminary injunction. However, it seems reasonable to assume (based on limited available information) that the public could be confused by OpenDeal’s use of the Republic name for a music related business.
The case was filed in the U.S. District Court for the Southern District of New York. On December 13, 2024, the parties notified the court after a settlement conference that they had settled the case, in principle. The terms of the settlement agreement were not disclosed. The judge in the case ordered that the case be dismissed, stating that the lawsuit could be refiled within 60 days “if the settlement is not consummated.” We may be able to surmise some terms of the settlement by seeing if OpenDeal renames its music-related business.
GLENN LITWAK is a veteran entertainment attorney based in Santa Monica, CA. He has represented platinum selling recording artists, Grammy winning music producers, hit songwriters, management and production companies, music publishers and independent record labels. Glenn is also a frequent speaker at music industry conferences around the country, such as South by Southwest and the Billboard Music in Film and TV Conference. Email Litwak at [email protected] or visit glennlitwak.com.
