A court battle over the future of online lyrics is getting heated.
Months after LyricFind accused Musixmatch of seeking to monopolize the market for providing lyrics to streamers like Spotify by signing an “unprecedented” deal with Warner Music, the rival is striking back – demanding that a federal judge toss out the case entirely.
The lawsuit claims that Musixmatch violated federal antitrust laws, but in a motion to dismiss the case filed on Thursday, the company says all it did was beat a competitor.
“LyricFind, unable to convince WCM to do business with it instead, has filed this meritless antitrust suit … hoping it can obtain through litigation what it was unable to win in the marketplace,” the company’s lawyers write. “Stripped of buzzwords and hyperbole, the core of LyricFind’s Complaint is simply that WCM chose Musixmatch instead of LyricFind.”
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The legal war between the two lyrics providers kicked off in March, when LyricFind accused Musixmatch of engaging in unlawful conduct that had “eliminated competition and raised prices.”
At the center of the case is an agreement that MusixMatch struck with Warner Music. LyricFind claims the major labels have historically licensed their vast catalogs of lyrics on a non-exclusive basis, allowing firms to compete for the right to provide them to streaming services. The lawsuit says the new deal with Warner was instead an exclusive deal that allegedly shuts out competitors from offering the music giant’s lyrics — an “unprecedented” approach.
“Musixmatch’s goal was simple: make sure that Spotify, and other [streamers], have no choice but to obtain [lyrics] from Musixmatch despite its higher fees — a plainly anticompetitive result,” the company’s attorneys wrote at the time. (Neither Warner Music nor Spotify were named as a defendant in the case or accused of any wrongdoing.)
But in Thursday’s response, Musixmatch said it had done nothing wrong, arguing that antitrust laws are designed to “protect competition, not particular competitors.” The company said LyricFind had turned to the courts simply because it was “angered” that a customer had cut ties.
“LyricFind’s alleged injury flows from WCM’s lawful decision to end its relationship with LyricFind, which means that LyricFind would have been injured regardless of whether Musixmatch or a different firm was appointed as WCM’s agent,” the company’s lawyers write.
“Nor has LyricFind plausibly alleged how it is foreclosed from competing in the marketplace: the Complaint is conspicuously silent on the duration of the agreement, and contradictory and implausible allegations about the actual scope of exclusivity defeat any plausible claim of substantial foreclosure.”
A rep for LyricFind did not immediately return a request for comment on Friday.
