Republic has billed such offerings as way for artists to “have more control over their art” by directly funding their own productions, and for fans to earn money by investing in the success of their favorite musicians. It also advertises that investors get special perks, like access to tickets, merch and events.
Republic Records, meanwhile, was founded as an independent in 1995 and today operates as one of UMG’s top imprints, home to Ariana Grande, Drake, Post Malone and many other major artists. Most notably, Taylor Swift signed to Republic when she made the jump to UMG in 2018. In Friday’s lawsuit, UMG said Republic’s use of its name on a music-related service violated U.S. trademark law, which prohibits the use of similar branding on overlapping goods and services. UMG said the use such a prominent name in the music industry, on a platform that offers many services “that record labels typically offer,” was precisely such an illegal overlap.
Trademark rights are tightly limited to certain types of commercial offerings, and UMG’s lawsuit stressed that it did not oppose Republic’s use of the name on its existing investment products, only on music-related offerings.on Monday that the company"does not comment on ongoing litigation and looks forward to working with UMG's counsel to resolve the matter amicably."
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