Believe Under Fire: UMG's $500 Million Copyright Lawsuit Unveiled

French digital music company Believe has seen a rise in its shares after UMG filed a $500 million copyright lawsuit against it in the U.S. UMG accuses Believe of illegally distributing copyrighted music under fake names. Believe's operations span across 50 countries and major streaming platforms.

In a significant legal move, Universal Music Group (UMG) has filed a $500 million copyright infringement lawsuit against Believe, a prominent French digital music company. The lawsuit has already impacted the markets, with Believe's shares rising by 1.6% following the news.

UMG alleges that Believe, including its U.S. unit TuneCore, has engaged in unauthorized distribution of copyrighted recordings for profit, even altering artist names and speeding up tracks to avoid detection. High-profile artists like Kendrick Lamar and Ariana Grande are said to be affected, with versions of their music reportedly distributed under pseudonyms.

The complaint was filed in the United States District Court for the Southern District of New York. Believe, founded by Denis Ladegaillerie and operating in 50 countries, has not responded to requests for comments but continues to be a substantial player in the digital music scene.

(With inputs from agencies.)