Warner Music Group and dessert chain Crumbl have reached an agreement in principle to settle a massive copyright infringement lawsuit centering on unauthorized social media marketing. WMG alleged that Crumbl utilized at least 159 copyrighted recordings and compositions in promotional TikTok and Instagram videos without securing proper sync licenses. The music conglomerate sought maximum statutory damages of $150,000 per infringed work, potentially exposing the brand to $23.85 million in financial penalties. The lawsuit successfully argued willful infringement by demonstrating that Crumbl continued utilizing trending audio despite acknowledging legal restrictions and ignoring a direct cease-and-desist letter.
This settlement underscores a formalized legal strategy by major rights holders to penalize and monetize corporate social media infringement following the successful Bang Energy precedent. As consumer brands increasingly rely on short-form video platforms for organic marketing, music companies are fiercely protecting their synchronization revenues by systematically targeting unauthorized commercial catalog exploitation.
Curated by MusicResearch.com from Music Business Worldwide. Read the full article at: Warner Music and Crumbl reach settlement in $24M copyright infringement lawsuit over TikTok posts
