Sony Music is suing Napster for more than $9.2 million, alleging the streaming service failed to pay royalties for over a year and then continued to illegally stream its music catalog after its license was terminated, as first reported by Billboard. The lawsuit targets Napster, its parent company Rhapsody International, and its new owner, metaverse-centric company Infinite Reality, which acquired the service in March.
- A broken promise: According to the music giant, the acquisition gave it the right to terminate its contracts over Napster's outstanding debt. Instead, Sony says it agreed to a payment plan, but alleges Napster never made a single payment, prompting the label to formally end its agreements in June and July.
- History repeats: The lawsuit isn’t an isolated incident for Napster. The company was also hit with a $3.4 million complaint from SoundExchange in June over unpaid royalties, and reports from earlier this year noted a pattern of late payments to numerous other labels and distributors.
- What's old is new: For a brand that Infinite Reality promised to reboot with futuristic AI and XR, the allegations represent a throwback to a much older problem. More than two decades after its first legal battle with the music industry, it seems Napster still can't shake its original sin: a business model built on not paying for the music.
The suit is part of a broader industry pushback, with Sony also suing AI music generators for copyright infringement. It's not the first time the label has gone after a digital platform for non-payment, having previously sued the video app Triller under similar circumstances. The legal trouble continues a rocky period for the Napster brand, which was previously acquired by a VR concert company in 2020 before its latest sale.