Sept 4 (Reuters) - Lyrics catalog service Musixmatch and
its private equity owner TPG must face a lawsuit
accusing them of conspiring to hinder rival company LyricFind
and charging inflated prices to Spotify ( SPOT ) and other music
streaming services, a U.S. judge has ruled.
U.S. District Judge Jacqueline Scott Corley in San Francisco
on Wednesday ruled that LyricFind had presented enough
information for now to pursue most of its lawsuit against
Italy-based Musixmatch and TPG.
LyricFind, which is based in Canada, and Musixmatch compete
with each other globally to provide music lyric services to
digital streaming services including Amazon ( AMZN ) and YouTube Music.
LyricFind last year accused Musixmatch of violating U.S.
antitrust law through an exclusive agreement with music
publisher Warner Chappell Music that LyricFind said cut off its
ability to provide lyric services for Warner's catalog of music.
Musixmatch in a statement called the judge's order a
"preliminary ruling in the legal process based solely on
LyricFind's allegations" and said it was confident it would
prevail in the case.
TPG declined to comment on the decision. Musixmatch and TPG
have denied any wrongdoing. Warner Chappell Music is not a
defendant.
Kellie Lerner, an attorney for LyricFind, in a statement
called the judge's ruling a "strong rebuke of the defendants'
effort to paint our case as 'meritless.'"
The lawsuit said Musixmatch and Texas-based TPG concocted a
"buy-or-bury" scheme in 2023 to knock LyricFind and others from
the market. LyricFind said TPG saw it as a competitive threat
and so tried to purchase the company.
In asking Corley to dismiss the lawsuit, Musixmatch said
Warner Chappell Music made a lawful decision to end its
relationship with LyricFind. Musixmatch in a court filing said
"the antitrust laws protect competition, not particular
competitors."
TPG told the court that the company as an investment firm
should not be dragged into LyricFind's lawsuit. It defended its
actions as "independent and lawful business behavior."
But Corley said LyricFind had shown at this stage in the
case that TPG had coordinated with Musixmatch and helped further
the allegedly anticompetitive conduct.
The judge dismissed some claims from the lawsuit, including
an allegation that TPG and Musixmatch had broken a contract by
disclosing LyricFind's confidential information to unauthorized
third parties.
The next hearing in the case is scheduled for Oct. 22.
The case is LyricFind Inc v. Musixmatch S.p.A and TPG Global
LLC, U.S. District Court, Northern District of California, No.
3:25-cv-02265-JSC.
For plaintiff: Kellie Lerner of Shinder Cantor Lerner, Brian
Caplan of Reitler Kailas & Rosenblatt and David Brownstein of
Farmer Brownstein Jaeger Goldstein Klein & Siegel
For Musixmatch: Matthew McGinnis, Rocky Tsai and David Young
of Ropes & Gray
For TPG: Edward Hassi, Michael Schaper and Josh Cohen of
Debevoise & Plimpton