Triller, the social video app, has reached a settlement in a lawsuit filed by Sony Music. The lawsuit accused Triller of disregarding the intellectual property rights of Sony’s artists by not paying license fees for the use of their songs on the app. The settlement was reached on July 21 after a federal judge ruled in favor of Sony on its breach of contract claim and ordered Triller to pay $4.6 million. According to a securities filing, the settlement includes a payment plan for the judgment and an undisclosed additional amount in exchange for dropping the copyright infringement claim. The specific terms of the deal were not disclosed.
The lawsuit was filed by Sony in August, alleging that Triller entered into a content distribution agreement in 2016 and a revised deal in 2021 but stopped paying the required license fees. This lawsuit came at a time when Triller had announced raising more than $300 million in funding since its launch in 2019 and had just acquired Bare Knuckle Fighting Championship. Additionally, Timbaland and Swizz Beatz had recently filed a lawsuit against Triller, claiming they were owed over $28 million related to the sale of Verzuz. However, the latter lawsuit was settled in September, resulting in an increased ownership stake for Timbaland and Swizz Beatz in Triller Network, Triller’s parent company.
In April, Triller admitted liability on Sony’s breach of contract claim to avoid the costs associated with discovery. The company requested a delay in entering the final judgment to facilitate settlement negotiations, but the court declined. U.S. District Judge Kevin Castel ruled in favor of Sony and ordered Triller to pay the $4.6 million judgment.
Triller has received a majority investment from Proxima Media, headed by Ryan Kavanaugh. The app has expanded its presence to include live events, such as Triller Fight Club, a boxing league. TrillerTV offers a library of original shows for its users. The app experienced a surge in popularity following the ban of TikTok in India and the potential ban in the United States.
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Triller had previously announced plans to go public through a reverse merger with SeaChange International but later terminated the agreement. Currently, the company has filed a confidential registration statement with the Securities and Exchange Commission for a potential initial public offering. However, the ongoing litigation and licensing costs may affect the profitability of the company.
Neither Sony Music nor Triller provided any comments regarding the settlement.
It is important to note that Alex Weprin contributed to this report.
