Spotify is facing a lawsuit from the Essence Festival of Culture, alleging an ‘intentional exploitation of Black culture.’
The lawsuit claims that their intellectual property was used without permission by Spotify to promote an event which Spotify hosted “as if they were part of” the festival. The Essence Festival is a massive draw to Louisiana and New Orleans with an estimated economic impact of $327 million annually. The lawsuit seeks compensation from Spotify for holding an event “within a zone where only entities with permission could advertise of sell merchandise associated with Essence Festival.”
The lawsuit also cites the fact that the breach comes after a 2019 agreement Spotify struck with Essence. That agreement authorized the use of Essence Festival’s trademarks for the promotion and hosting on an event for that year only promoted as the “House of Are and Be.”
The agreement was to be part of a larger longer-term partnership, but after the pandemic forced the cancellation of Essence Festival 2020—the negotiations stopped. Spotify did not renew its agreement with Essence Festival when it promoted the 2022 event, which it described as a ‘return.’
“The promotion of the 2022 event… as a ‘return’ to its success further [evidenced] Spotify’s awareness that such an event…would require Essence’s authorization,” the lawsuit states. Lawyers for Essence argue that Spotify’s promotion and unauthorized use of Essence Festival constitute “brand dilution, brand confusion, damage to business reputation and loss of business opportunity.”
“The unsanctioned Spotify…action…is yet another example of the historic, intentional exploitation of Black culture Black IP, Black creators, Black businesses and Black equity,” reads the lawers’ statement. “We must protect and celebrate those companies that collaborate with our businesses to create and return value in our communities and defend our rights and value against those that choice to exploit our businesses and community.”