Live Nation settles Songkick lawsuit for $110-million
Live Nation’s Ticketmaster subsidiary has settled its two-year legal battle with Songkick, the ticketing start-up that began out of a Brooklyn loft, despite the fact that the case’s trial was set for later this month in federal court.
Live Nation has subsequently agreed to pay Songkick’s owners $110-million in exchange for the company’s remaining assets.
The settlement’s closing arrives two years after the original legal battle began between the two companies, in which Songkick’s argument originally hinged on their rights to ticket sales. They’d believed Live Nation’s blocking of presale tickets and demanding fees on the sale of tickets was anti-competitive behavior. Eventually, Live Nation countersued, arguing they had given respective venues the right of determining how presale block tickets were to be sold.
The case only continued to deepen over time, wherein Songkick accused Live Nation of antitrust violations. Allegations arose when news leaked that a former Songkick employee was hired by Ticketmaster to monitor Songkick’s internal business, sales, and clients. Court documents reportedly show that Ticketmaster did indeed view Songkick as a competitive threat and stated: “that the company could possibly disrupt the exclusivity system in North America that allowed Ticketmaster to have a dominant marketshare.”
While it’s unsure at the moment what the direct ramifications of this settlement will be, Ticketmaster’s acquisition of Songkick could lead to a major shift in the current landscape of their ticketing commerce platform, as the company has gained access to Songkick’s anti-scalping algorithm, their API applications, and patent portfolio.
H/T: Billboard
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