Believe Faces $500 Million Copyright Lawsuit from Universal Music Group

Shares in Believe rose after Universal Music Group filed a $500 million copyright lawsuit. UMG accuses Believe of distributing illegal copies of songs by misnaming artists and altering tracks. Believe, a French firm in digital music, has expanded through acquisitions. The case is filed in New York.

Shares in Believe, a French digital music company, saw a 1.6% rise after a late trading start on Tuesday, following a major lawsuit by Universal Music Group in the U.S. The world's largest music label seeks damages of at least $500 million, alleging copyright infringement.

According to UMG, the lawsuit claims that Believe and its U.S. entity, TuneCore, profited from distributing unauthorized copies of copyrighted tracks. Allegedly, Believe altered artist names and published modified versions of original songs, impacting renowned artists such as Kendrick Lamar and Lady Gaga.

Though based in Paris and listed in 2021, Believe, founded by Denis Ladegaillerie in 2005, has expanded internationally. It operates in 50 countries, acquiring music labels in Europe and the Americas. Despite reaching out, Reuters had not received a comment from Believe or its CEO.

(With inputs from agencies.)