What It Means If Drake Wins Lawsuit Against UMG

In a shocking move, Drake's company Frozen Moments LLC has filed pre-action petitions against his parent record company Universal Music Group.

One, filed in New York Supreme Court on Monday (Nov. 25), accuses the music conglomerate of colluding with Spotify to artificially inflate Kendrick Lamar's "Not Like Us" diss song to Drizzy's detriment. The 17-page filing is filled with shocking allegations including claims that UMG violated the Racketeer Influenced and Corrupt Organizations Act (RICO), the NY Deceptive Business Act and the NY False Advertising Act. A second legal action, which was filed in Texas on Monday, accuses UMG of defamation for releasing "Not Like Us," which contained "falsely accusing [Drake] of being a sex offender," and accused iHeartRadio of conspiring in a play-for-pay scheme.

Drake has yet to officially file a lawsuit but the filing is a preemptive action in order to force UMG to turn over related documents. If Drake does take on the music giant in court and wins, the ramifications could be massive.

If the allegations in the court filing are true, music giant UMG conspired to engage in a campaign to "manipulate and saturate the streaming services and airwaves" with "Not Like Us" using bots, pay-to-play agreements and other tactics in order for UMG executives to maximize profits. One accusation is especially damning. According to the filing, UMG charged Spotify a 30 percent lower licensing rate in exchange for Spotify recommending the song to users who are searching for unrelated content. Neither company reportedly disclosed this licensing agreement.

UMG, along with the other two record companies that make up the big three: Sony Music Entertainment and Warner Music Group, hold ownership stakes in Spotify. The big three companies also reportedly negotiated with Spotify on the value of a stream, which creates a conflict of interest unique to the music industry. It also means the companies have the ability to dictate an artist's value. According to the filing, UMG did so with "Not Like Us."

Drake has been signed under the UMG umbrella his entire career. He was initially inked through Young Money Records and Republic. In 2022, the signed a new deal directly with UMG subsidiary Republic for a reported $400 million. However, his relationship with UMG CEO Lucian Grainge may have soured. Drake claims the music giant used illegal means to prioritize Kendrick, who is also in bed with UMG through his pgLang label's deal with Interscope.

With something as big as RICO allegations being levied against UMG, a win for Drizzy in court could start a wave of change in the music industry. An industry that has been under scrutiny as the ambiguity of streaming and album sales continues to be a mystery.

A case this big could cause the state and government to step in, akin to New York State Attorney General Eliot Spitzer's probe into payola in 2004, which resulted in all three big record companies agreeing to pay settlements.

A win for Drake could be a huge leap forward in protecting artists in the music industry and outing labels for unscrupulous practices. That is if Drake has a case.

Universal Music Group is denying Drake's accusations. A spokesperson for the company has released the following statement to XXL in response to Drake's accusations: "The suggestion that UMG would do anything to undermine any of its artists is offensive and untrue," the statement reads. "We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear."

If Drake does take this case all the way court and wins, it would be an unprecedented moment. A moment that could disrupt the system and cause major change in music industry.

Read More: Who Is Lucian Grainge, and How Powerful Is He? Very