UMG settles trademark dispute
After three years of litigation, Universal Music Group (UMG) has settled a trademark dispute with investment platform OpenDeal, which does business as Republic, and blockchain platform Opulous.
UMG argued that OpenDeal’s use of the name “Republic” created “confusion” with Republic Records Trademark when OpenDeal began offering fractional music investing to clients.
UMG and OpenDeal notified the U.S. District Court for the Southern District of New York on Friday (December 13) that they have reached an agreement in principle.
The terms of the agreement were not disclosed. Judge Jessica Clark gave the parties a 60-day period to reopen the case if the terms of the agreement were not met.
Background on the lawsuit
Posts by UMG on behalf of its label, Republic Records, sued OpenDeal in 2021, shortly after OpenDeal began selling a new investment product allowing retail investors to buy shares of music assets.
In its original complaint, which can be read here, UMG said it had no problem with OpenDeal’s use of the Republic name to trade investment services – but not when it was involved in the music industry. In 2022, UMG amended the lawsuit to add Opulus as a defendant. The blockchain company has partnered with OpenDeal/Republic for a fractional music investment product.
UMG argued that OpenDeal’s marketing of music investment services, which included access to exclusive music and concert tickets on top of royalties paid to equity owners, meant that its services under the “Republic” name were indistinguishable from those of a record label.
The Republic Records trademark was used by OpenDeal “in connection with the full range of products and services that record labels typically offer, ranging from recordings, merchandise, event tickets, advertising and royalty services to literal investments in artists,” UMG said.
Republic Records is one of the most famous labels in the world. It includes such stars as Taylor Swift, Ariana Grande, Nicki Minaj, Drake, The Weeknd, Post Malone, Jonas Brothers, Stevie Wonder, and John Mellencamp. It has been recognized by Billboard as the best label of the year multiple times, including in 2024.
OpenDeal’s defense
In response to the allegations, the full text of which can be read here, OpenDeal denies that it “engaged in any unlawful conduct or has any liability to the plaintiff.”
Among other things, OpenDeal argued that UMG “suffered no harm” as a result of OpenDeal’s use of the name Republic.
It asked the court to reject UMG’s request for an injunction preventing OpenDeal from using the Republic name in connection with its music activities.
The settlement was reached following a court-ordered conference between the parties on December 11.
Universal Music Group settles trademark dispute over use of ‘Republic’ name
