Roblox allows users to embed special players into the games they create, through which music can be played. Major music labels don’t like it. They accuse the company of lost profits and demand at least $200 million in compensation.The lawsuit against Roblox was filed in the Central District Court of California, The Wall Street Journal reports.
The main plaintiffs were the major label Universal Music Group and the Canadian electronic musician Deadmau5.
Companies associated with Big Machine Records, Concord Music Group, Downtown and other publishers also sent their claims to the gaming platform. The plaintiffs represent the interests of songwriters and such major artists as Ed Sheeran, Ariana Grande, The Rolling Stones and Imagine Dragons.
The lawsuit alleges that Roblox sells its users the ability to embed virtual music players and boomboxes into the games they create. Through them, players include and download songs by artists, thereby violating copyrights. According to the plaintiffs, hundreds of thousands of people have already installed such players.
“Roblox actively exploits its impressionable user base and their fascination with popular music, teaching children to piracy,” the statement reads.
The lawsuit against Roblox is far from the first in a series of proceedings by labels and creators of popular sites. Previously, music publishers have already argued with TikTok, Pelton and Snapchat due to the fact that people actively use copyrighted music in their services.
Sometimes disagreements still manage to be resolved. For example, Facebook has agreed to enter into broad licensing agreements with labels to legalize the use of music by users. There were examples of such a right-wing settlement in Russia. The most revealing of them is the legalization of music streaming in VKontakte.
At the same time, Roblox has experience working with music labels. The company held concerts of Lil Nas X and the Royal Blood band on its site. There were similar performances in Fortnite, where users watched the virtual shows of Marshmello and Travis Scott. However, such events, unlike illegal listening to music, were organized jointly with music companies and did not violate copyrights.
Roblox has already warned its investors about possible copyright lawsuits. “As the company’s competitive ability and growth increases, so does the likelihood of claims from copyright holders,” she said before going public.
Recall that this year Roblox became public through a direct listing. As of June 9, its market capitalization is estimated at $52 billion. In March, the monthly audience of the platform exceeded 42 million users.