Spotify held an event last year, allegedly utilizing the branding of the biggest Black cultural festival in the US without authorization. This is according to a complaint filed against the streaming company by the organizers of the Essence Festival of Culture.
Festival lawyers claim their case is a statement against the "intentional exploitation of Black culture" and intellectual property by a business with the financial means to buy the right to use the Essence name and logo.
The Essence Festival of Culture
In a report by The Guardian, the annual Essence Festival in New Orleans has been called a "party with a purpose" by festivalgoers and organizers alike. The festival is not only about recognizing and praising Black artists but also about helping Black communities improve their health, finances, civic participation, and access to cutting-edge technology.
The event has grown into a major economic boon for the host city and the rest of southeast Louisiana throughout the years. The event's organizers predicted a $327 million economic effect on the region and 3,600 jobs created over the period of the event in 2022.
However, such numbers are nothing compared to the projected $31 billion valuation of Spotify.
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Allegations of 2019 Spotify-Essence Contract Breach
The festival's organizers took issue with Spotify in 2022, claiming that the music streaming service had improperly advertised an event they had staged as if they were affiliated with the festival using Essence's name and trademarks.
On June 23, the festival's legal team filed a complaint against the event organizers, claiming that they should be compensated since the event took place inside a restricted area where only authorized vendors were allowed to sell Essence Festival items.
According to the complaint, the alleged breach occurred when Spotify signed a deal with Essence in 2019 that allowed the streaming company to utilize the festival's trademarks to advertise and organize an event, The House of Are & Be.
Spotify and Essence reportedly entered into the deal with the expectation of developing into a more substantial business collaboration in the future. The 2020 negotiations failed because the Essence Festival had to be canceled because of the Covid-19 pandemic.
Based on the complaint filed on behalf of Essence's organizers by a team of lawyers headed by James Williams, Spotify's failure to renew its 2019 licenses before advertising the 2022 event as a "return" violated the terms of the agreement.
"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 stated.
Damages for brand dilution, brand confusion, damage to business reputation, and loss of business opportunity are listed as the basis for Essence's claim. Besides Spotify, the local real estate developer who owns the space where the event took place is also cited as a defendant.
