Musk's X, major labels end dispute over music on social-media platform

• The music publishers originally sued X in 2023, accusing the platform of infringing hundreds of copyrights by allowing users to post songs without proper licensing
• X countersued the labels in January in Texas, alleging antitrust violations for refusing to negotiate individual licensing deals and forcing inflated licensing rates
• A federal judge previously dismissed parts of the publishers' case but allowed contributory infringement claims to proceed before the parties reached this resolution

Summary

Elon Musk's X Corp has reached an agreement with major music publishers, including Universal Music Group and Sony Music, to end all legal disputes over music usage on the X social-media platform. According to federal court filings submitted Thursday, both parties agreed to dismiss their respective lawsuits with prejudice, meaning the claims cannot be refiled.

Background:

In June 2023, a group of 17 music publishers sued X Corp for copyright infringement, alleging the platform allowed users to post their songs without proper licensing. The lawsuit claimed hundreds of copyright violations. U.S. District Judge Aleta Trauger partially ruled in X's favor in 2024, finding the company not liable for direct or vicarious infringement but allowing a contributory infringement claim to proceed.

X Corp filed a countersuit in Texas in January, accusing the publishers of antitrust violations and alleging they conspired to block competition while demanding inflated licensing rates. The publishers had requested dismissal of this case in April.

Key Details:

• Main parties: X Corp, Universal Music Group, Sony Music, and the National Music Publishers Association
• Both the original copyright lawsuit and X's antitrust countersuit were dismissed
• Claims dismissed with prejudice (permanent)
• No details disclosed regarding settlement terms or financial arrangements

Market Implications:

The resolution removes significant legal uncertainty for X Corp and suggests both parties reached a mutually acceptable licensing arrangement. This could pave the way for X to expand music-related features while ensuring proper compensation for rights holders. Neither party provided comment on settlement specifics.