Singer Barry Manilow, known for hits like “Looks Like We Made It,” is embroiled in a legal battle with Hipgnosis Songs Fund, a company owned by Blackstone Inc. Manilow, like many musicians in recent years, sold his song catalog in 2020, but the deal has now become the subject of a $1.5 million lawsuit.
Manilow and his company, Stiletto Entertainment, filed the suit in U.S. District Court, accusing Hipgnosis of fraud, misrepresentation, and breach of contract. The lawsuit claims that Hipgnosis failed to pay out bonus funds as agreed upon in the initial agreement.
The dispute centers around two $750,000 bonus payments that were contingent on Manilow’s songs seeing a 10% or greater increase in income following the sale. Hipgnosis maintains that the songs didn’t meet the required criteria, leading to the non-payment of bonuses.
Manilow, however, alleges that Hipgnosis has failed to uphold its end of the bargain by not adequately pursuing opportunities for his music in areas like commercials, films, and television, as well as not reissuing albums. He claims that Hipgnosis promised a dedicated team to optimize the value of the royalties, which they have not fulfilled.
The lawsuit comes amid a trend of older musicians selling their song catalogs to large companies like Hipgnosis and Blackstone. The case could have significant implications for future deals as it raises questions about the guarantees made by these companies and their commitment to promoting the acquired music.
Hipgnosis, founded in 2018 by music executive Merck Mercuriadis, has spent over $2 billion acquiring song rights, becoming one of the largest song catalog companies globally. Its portfolio includes songs from renowned artists like the Red Hot Chili Peppers, Journey, Neil Young, Ed Sheeran, and Justin Bieber.
The company’s acquisition by Blackstone for $1.6 billion earlier this year added over 40,000 songs to their existing catalog. However, the deal came after a decline in Hipgnosis’ share price, prompting shareholders to demand changes. Mercuriadis stepped down from his role in July.
The outcome of Manilow’s lawsuit could set a precedent for how future song catalog deals are structured and monitored, potentially impacting how artists negotiate terms and safeguard their musical legacies. It highlights the importance of detailed contracts, clear expectations, and ongoing transparency in the evolving landscape of music ownership.
