APG Sues Create Music Group
Mike Karen’s indie music company APG has filed a lawsuit against Create Music Group, accusing them of “blatant theft” of APG’s songs and recordings.
In a complaint submitted to the U.S. District Court for the Central District of California on Tuesday (Jan. 21), the publisher Publishing group “Artist”, label Artists Affiliate Group, and distributor Release Global LLC alleged that Create Music Group claimed copyright for YouTube video content owned or licensed by APG.
The claim further alleges that Create attempted to justify copyright infringement of APG’s recordings and compositions by entering into fictitious ‘contracts’ with some artists involved in those works, fully aware that they were already under contract with APG.
“Create claims that they have revolutionized the music industry by developing a new ‘business model.’ In reality, Create’s ‘business model’ comprises stealing the intellectual property and contractual rights of innocent rights holders like APG,” the complaint states, which is available for full review here.
Create Music Group’s Response
Create has refuted the allegations, dismissing them as a “legal stunt” intended to disrupt their business operations.
“In light of the recent lawsuit filed by Artist Partner Group (APG), we at Create Music Group (CMG) find ourselves reminiscent of a classic vinyl record—replaying old grievances,” a spokesperson for Create stated.
“We believe that APG, a long-time industry participant, struggles to adapt to the digital era and resorts to legal theatrics to impede our innovative progress.”
“Our advanced technology and progressive approach empower artists, ensuring they receive the recognition and compensation they deserve in today’s fast-paced music landscape. APG’s claims are not just unsubstantiated but demonstrate that the organization relies on outdated practices,” the spokesperson added.
“We stand firm in our position and remain dedicated to our mission of transforming the music industry for the benefit of both artists and fans. As the saying goes, ‘You can’t stop the beat,’ and at CMG, we strive to keep the music alive amidst external noise.”
APG was founded and led by the industry veteran Mike Karen, who sold APG’s recording music subsidiary to Warner Music Group in 2020.
In June, BIE reported that Create Music Group completed a US$165 million minority investment round that valued the company at 1 billion dollars.
“Create’s exorbitant valuation is based on widespread and willful copyright infringement and significant tortious interference with third-party contracts,” asserts APG’s complaint.
“We are… determined to continue our mission to revolutionize the music industry for the benefit of both artists and fans.”
Create Music Group
APG seeks the court to award income from the allegedly infringed songs and recordings, as well as punitive damages and damages reflective of the increase in Create Music Group’s market value attributed to their alleged theft of APG’s intellectual property.
According to the complaint, APG alleges that Create Music Group is actively pursuing music uploaded to YouTube by third parties without any rights claims.
“The defendants then falsely submit claims to YouTube, baselessly asserting ownership of these sound recordings and compositions,” the complaint states, noting that Create uploaded music owned by APG to Spotify, Apple Music, and YouTube.
To substantiate their actions, the complaint claims that Create persuaded artists and songwriters to sign “fictitious” contracts while they were already under an agreement with APG.
“Create and its subsidiaries (LLC ‘Nation’ and Lawley Palace LLC) improperly coerced these artists into signing these fictitious ‘contracts’ by falsely stating that APG Companies were allegedly underperforming and leaving potential earnings behind, thereby damaging APG’s reputation,” the complaint asserts.
Allegations of Plagiarism and Improper Inducement
Among the artists associated with APG who allegedly signed “fictitious” contracts with Create is rapper/singer/songwriter Chico P., along with rappers Sdot Go, Jay5ive, Jay Hound, and Baby Kia, as stated in the complaint.
The lawsuit claims that the defendants interacted directly with these artists to persuade them to sign the fictitious ‘contracts’, fully aware that they had legal representation managing their affairs.
A list of 143 recordings and 31 compositions that APG claims Create Music Group infringed is attached to the complaint. Among these are tracks by Jay Hound and Jay5ive’s UKRAINE, Sdot Go’s Free g, and little freak by bbno$.
The complaint also levels accusations of plagiarism against Create, alleging that they misappropriated VaporGod‘s recent hit Diamonds n Rose with a track titled Edited by Diamante Rosa. After being notified of potential infringement, Create “devised a misguided plan to confuse plaintiffs” by releasing altered versions of Installation, as alleged by the complaint.
The complaint includes a comparison between the notes of Diamonds n Rose and Installation, suggesting notable similarities in the two compositions:
APG sues Create Music Group for alleged ‘massive willful copyright infringement’
