After three years of litigation, Universal Music Group (UMG) has settled a trademark dispute with investing platform OpenDeal, which does business under the name “Republic,” and blockchain platform Opulous.
UMG had argued that OpenDeal’s use of the “Republic” name created “confusion” with the Republic Records trademark when OpenDeal began to offer clients fractional investing in music.
UMG and OpenDeal notified the US District Court for the Southern District of New York on Friday (December 13) that they had reached a settlement in principle.
Terms of the agreement were not disclosed. Judge Jessica Clarke gave the parties a window of 60 days to refile the case, if the terms of the agreement are not met.
UMG Recordings, on behalf of its label Republic Records, sued OpenDeal in 2021, shortly after OpenDeal began marketing a new investment product allowing retail investors to buy shares in music assets.
In its original complaint, which can be read in full here, UMG said it didn’t have a problem with OpenDeal using the Republic name to trade in investment services – but not when it engages in activities in the music industry. In 2022, UMG amended the complaint to add Opulous as a defendant. The blockchain company partnered with OpenDeal/Republic on the fractional music investment product.
UMG argued that the marketing for OpenDeal’s music investment services — which included access to exclusive music and concert tickets, on top of royalties paid to the fractional owners — meant that its services under the “Republic” name were indistinguishable from those of a record label.
Republic Records’ trademark was being used by OpenDeal “in connection with the full suite of goods and services that record labels typically offer, ranging anywhere from sound recordings, merchandise, event tickets, promotional services, and royalty payment services to literal investments in artists, their music, and their ventures,” UMG alleged.
Republic Records is one of the most prominent labels in the world. Its roster includes stars such as Taylor Swift, Ariana Grande, Nicki Minaj, Drake, The Weeknd, Post Malone, the Jonas Brothers, Stevie Wonder, and John Mellencamp. It has been named Billboard’s Top Label of the Year numerous times, including in 2024.
In a response to the allegations, which can be read in full here, OpenDeal denied that it “engaged in any wrongful conduct or that it has any liability to plaintiff.”
Among other things, OpenDeal argued that UMG had not “suffered any harm” as a result of OpenDeal’s use of the Republic name.
It asked the court to deny UMG’s request for an injunction to prevent OpenDeal from using the Republic name in connection with music activities.
The settlement came after a court-ordered conference held between the parties on December 11.Music Business Worldwide