Musi’s app, which has amassed millions of downloads, faced criticism from third parties such as YouTube, the National Music Publishers Association (NMPA), and the International Federation of the Phonographic Industry (IFPI). These organizations alleged that Musi violated intellectual property rights, primarily by using YouTube content without proper authorization and generating advertising revenue through it.
The Complex Web of Alleged Infringement
At the heart of the dispute is Musi’s practice of offering music available on YouTube, which the IFPI claims is done without permission. YouTube has also accused Musi of violating its terms of service by monetizing its content through ads while depriving artists of royalties, according to the NMPA.
Despite ongoing discussions between the parties, the issue remained unresolved, prompting Apple to remove Musi’s app from the App Store in September. Musi subsequently filed a lawsuit, accusing Apple of acting in bad faith and violating the DPLA.
Judge Dismisses Claims of Bad Faith and Unreasonable Removal
Musi argued that Apple, by positioning itself as an impartial operator of the App Store, had conspired with music industry giants to destroy the company, citing undisclosed backchannel discussions. However, Judge Lee focused on whether Apple had a reasonable belief that Musi was infringing intellectual property rights—and ruled that it did.
