Universal and Sony Sue Musi Over Unlicensed Streaming Model

Universal Music and Sony Music have jointly filed a copyright infringement lawsuit against Musi, a music streaming app that distributes songs without direct licensing agreements with rightsholders.

The action, lodged in Canada, marks an escalation by the recorded music industry against what it terms “parasitic apps” that build commercial services around unlicensed music streams.

Musi’s Business Model and App Store Removal

Musi does not hold licensing deals with record labels or music publishers. Instead, the app sources its catalogue from YouTube, layering its own advertising and subscription offerings over the content. The app was removed from the Apple App Store in September 2024 following a complaint from YouTube, but it remains functional on devices that downloaded it before the removal.

Apple’s decision to pull the app prompted Musi to sue the tech company. That case concluded with a ruling in Apple’s favour, as the App Store terms of service permit Apple to remove apps “at any time, with or without cause.”

Industry Labels Musi a ‘Parasitic’ Service

Victoria Oakley, CEO of the International Federation of the Phonographic Industry (IFPI), described the new lawsuit as a warning to similar services. “We are serving notice on parasitic apps, which are designed specifically to exploit artists and their music, and undermine legitimate music services,” Oakley said. “They have no place in today’s music ecosystem which is built on the premise of empowering innovation through licensing.”

Musi has previously argued that its model is lawful because YouTube already licenses the music and pays rightsholders, and the app claims to comply with YouTube’s terms of service. YouTube’s earlier complaint to Apple, however, suggests the platform disputes that compliance.

Canadian Court to Weigh Copyright Claims

The lawsuit was filed in Canada, where Musi Inc is based. The case will centre on copyright law rather than YouTube’s terms of service, as YouTube is not a party to the litigation.

IFPI and its Canadian affiliate Music Canada allege that Musi is “making copyright-protected sound recordings available to the public without authorisation” and “deliberately circumventing the technical protections put in place by YouTube in order to steal content from the service.”