Music Group’s Settlement Update
Music Group Music Group and the investor Private Equity Round Hill Music Royalty Partners have “conveniently” settled their dispute concerning control and trademark violations, publicly referring to the situation as a “misunderstanding.”
Zync Music, a licensing and publishing firm specializing in music synchronization placements, filed a lawsuit against Round Hill in the US Federal Court in May last year. The suit claimed the “egregious and numerous violations” of their joint venture, which Zync alleges was terminated in 2022.
The company accused Round Hill of “gross mismanagement” of income and expenses, along with “unreasonable” deductions from payments owed to Zync. The complaint asserted that Round Hill refused to pay over 5 million dollars to Zync and used the Zync trademark without authorization.
In a statement released on Tuesday (February 25), a representative from Round Hill Music said: “Zync and Round Hill have conveniently resolved their dispute, leading to the voluntary dismissal of the Zync trial against Round Hill Music.”
“Zync regrets that this issue escalated to such an extent,” said Zync Co-CEO Marisa Baldi.
“The claims and charges made in the complaint against Round Hill and its personnel stemmed from a misunderstanding and were, therefore, withdrawn.”
Future Collaboration
The companies expressed their commitment to continue working together, though they did not clarify whether the termination of their agreement would persist or if a new agreement would be established.
“Both parties are proud of the work done by Zync with Round Hill and the business they have built together,” said Josh Cars, General Director of Baldi and Round Hill Music, in a joint statement.
“We look forward to advancing Zync as they embark on a new chapter. The leaders of Zync and Round Hill wish each other continued success.”
“We look forward to advancing Zync as they embark on a new chapter. The leaders of Zync and Round Hill wish each other continued success.”
Marisa Baldie, Zync Music Group and Josh Cruss, Round Hill Music
Zync was founded in 2002 by Sann Hagelste, who collaborated with industry veteran Baldi (formerly with Universal Music Publishing and Polygram Music Publishing) in 2003.
In 2017, Zync entered a partnership with Round Hill Music Royalty Fund LLP, integrating Round Hill into Zync. While Zync will continue to operate independently, it will utilize music owned by Round Hill for synchronization licensing. This partnership provided Zync access to works by renowned artists like Whitney Houston, Bruno Mars, and Louis Armstrong.
According to their website, Zync has been affiliated with Round Hill since 2019, when Baldie took on the role of Chief Creative Officer at Round Hill Music, and Hagelsten departed from the company.
The lawsuit filed last year, which can be read in full here, claimed that Round Hill continued to exploit assets from the joint venture without consent and accused Round Hill’s senior management of “bullying and mistreatment” toward Zync.
In October, Round Hill submitted a motion to dismiss the case, disputing Zync’s claims and arguing that the court lacked jurisdiction over the matter.
Judge Analisa Torres of the US District Court in the Southern District of New York has not yet ruled on this motion, as Round Hill and Zync jointly requested the court to dismiss the case with prejudice.
Zync reports that over its 23 years, it has secured more than 20,000 licenses and generated 100 million dollars for its clients.
Round Hill states it manages assets totaling 900 million dollars, which includes nearly 200,000 songs across more than 180 catalogs.
Zync Music, Round Hill ‘amicably’ resolve breach-of-contract lawsuit
