Jay Z’s TIDAL music streaming service was hit with a $5 million lawsuit for withholding royalties from artists and copyright infringement.
John Emanuele of Yesh Music LLC hit the company with the lawsuit claiming that they have not paid Indie artists royalties, as well as, infringing on their copyright.
According to Fortune, John Emanuele is suing S. Carter Enterprises, TIDAL, and two other companies behind the music streaming service. But TIDAL is denying the allegations claiming that they are up to date with royalty payments.
“TIDAL is up to date on all royalties for the rights to the music stated in Yesh Music, LLC and John Emanuele’s claim and they are misinformed as to who, if anyone, owes royalty payments to them,” TIDAL said in the statement. “As Yesh Music, LLC admits in their claim, TIDAL has the rights to the Master Recordings through its distributor Tunecore and have paid Tunecore in full for such exploitations. Their dispute appears to be over the mechanical licenses, which we are also up to date on payments via Harry Fox Agency our administrator of mechanical royalties.”
As news of the lawsuit spreads, TIDAL has also announced that they have fired their CFO and COO. That move could be as a result of the lawsuit.
TIDAL also noted in their statement that Jay Z’s company S Carter Enterprises, LLC has nothing to do with the music streaming service.
“They especially should not be naming S Carter Enterprises, LLC, which has nothing to do with Tidal,” the statement reads. “This claim serves as nothing other than a perfect example of why America needs Tort reform.”
TIDAL is owned by mostly artists including Jay Z, Beyonce, Nicki Minaj, Madonna, Alicia Keys, Rihanna, Kanye West and more.
Will TIDAL survive this storm? Sound off in comments below.