PE-Backed Musixmatch Fails to Escape Lyric Antitrust Claims (1)

Italy’s Musixmatch SpA must face the bulk of an antitrust lawsuit challenging the company’s dominance in the “lyric data services” and “lyric rights licensing” markets.

Judge Jacqueline Scott Corley of the US District Court for the Northern District of California on Wednesday largely denied Musixmatch’s motion to dismiss, holding that plaintiff LyricFind Inc. plausibly alleged that Musixmatch substantially foreclosed competition with through exclusive dealing.

The injury being alleged is the type that “antitrust laws are intended to prevent,” Corley said.

The outcome of the suit, brought by LyricFind in March, could have major implications for the music industry, particularly around ...