Record label sues Universal, Sony/ATV over Iggy Azalea contract

Music publisher and label Make Millions Music is suing Iggy Azalea’s rights-holders over an alleged breach of contract, dating back to 2009.

According to US court documents filed in Texas on Thursday, the Mullumbimby-born rapper’s former boyfriend Maurice Williams – aka rapper Jefe Wine – had a valid and enforceable contract with her in 2009. Make Millions now claims Williams sold all interest and ownership rights to the company for US$25,000 on March 14, 2012 following negotiations with attorneys, Azalea, and her manager, George Robertson.

The suit claims Azalea (real name Amethyst Amelia Kelly) stopped performing under her agreement with Make Millions when she signed with current rights-holders Universal Music Group andSony/ATV Music Publishing as well as New York'sAraca Merchandise and Araca Productions.

While Azalea is not a party to the complaint because Williams assigned Azalea’s contract to Make Millions, the label claims that the recording contract predates any agreement or contract held by Sony/ATV, Universal and The Araca Group.

"The assignment to plaintiff includes, but is not limited to, all the recordings, merchandising, copyrights, trademarks, video, likeness, performance and all other rights under the recording contract," Make Millions said in the lawsuit.

"Subsequent to the assignment, Kelly refused to honor and comply with the terms of the recording contract. Further, after the assignment, Kelly's musical career escalated and, unknown to plaintiff and in violation of the recording contract and assignment, Kelly began communication and negotiation with other parties, including defendants, and in direct breach of her recording contract sold rights and services owned by plaintiff by entering agreements with defendants."

Gene Goodsell, who with his Goodsell Lawyers is the only Australian music and entertainment law firm with a lawyer based in Los Angeles, told TMN cases such as this are far more common in the US than they are in Australia.

“The big music labels wield more power in the US and can be quite ‘assertive’ in chasing successful artists. There is not much else that could have been done by Williams and ‘Make Millions Music’ (MMM) to prevent the behaviour of the big music labels,” said Goodsell. “There was an assignment by Williams of ‘all the recordings, merchandising, copyrights, trademarks, video, likeness and performance and all other rights under the recording contract’, MMM says in the lawsuit.

“If this matter were held in Australia, MMM would probably apply for injunctive relief against the defendants, as well as tortious interference with contract and restorative damages to restore the plaintiff to the position as if the defendants had never entered into any contract with Azalea.”

Make Millions, who is represented by Houston attorneys Joseph Dahr Jamail III and Robert Taylor II, is seeking damages for tortious interference with contract, conspiracy to interfere with contract, conversion and negligence.

This case is governed by US law. Please consult an Australian lawyer for information about your legal rights.