Zync Music Group and private equity music investor Round Hill Music Royalty Partners have “amicably” settled a breach-of-contract and trademark infringement lawsuit, stating publicly that the matter was a “misunderstanding.”
Zync Music, a licensing and publishing company that specializes in music sync placements, sued Round Hill in a US federal court in May of last year, alleging “egregious and numerous breaches” of their joint venture agreement, which – according to Zync’s original complaint – was terminated in 2022.
The company accused Round Hill of “gross mismanagement” of income and expenses and “unwarranted” withholding of payments to Zync. Its complaint alleged Round Hill had refused to pay more than $5 million to Zync. It also alleged that Round Hill was using the Zync trademark without permission.
In a statement released on Tuesday (February 25), a spokesperson for Round Hill Music said: “Zync and Round Hill have amicably resolved their dispute, which has resulted in the voluntary dismissal of Zync’s lawsuit against Round Hill Music.”
“Zync regrets that this matter escalated to such a degree,” Zync co-CEO Marisa Baldi said.
“The claims and allegations made in the complaint against Round Hill and its personnel were the result of a misunderstanding and are therefore withdrawn.”
The companies indicated they would continue to work together. They didn’t specify whether the purportedly terminated agreement between them is to continue or whether they signed a new agreement.
“The parties have felt and continue to feel very proud of the work done by Zync together with Round Hill, and the business that they have built together,” Baldi and Round Hill Music CEO Josh Gruss said in a joint statement.
“We look forward to Round Hill preserving and carrying forward Zync’s ethos as they shepherd Zync into its new phase. The principals of Zync and Round Hill each wish each other continued success.”
“We look forward to Round Hill preserving and carrying forward Zync’s ethos as they shepherd Zync into its new phase. The principals of Zync and Round Hill each wish each other continued success.”
Marisa Baldi, Zync Music Group and Josh Gruss, Round Hill Music
Zync was founded in 2002 by Sanne Hagelsten, who partnered with sync and publishing veteran Baldi (previously of Universal Music Publishing and PolyGram Music Publishing) in 2003.
In 2017, Zync entered into a partnership with Round Hill Music Royalty Fund II LLP, under which Round Hill took a stake in Zync. Zync would continue functioning as an independent entity but would be fed music owned by Round Hill for sync licensing purposes. The deal gave Zync access to music from artists such as Whitney Houston, Bruno Mars, and Louis Armstrong for sync licensing purposes.
According to its website, Zync has been a Round Hill Company since 2019, when Baldi took over as Chief Creative Officer at Round Hill Music and Hagelsten left the company.
The complaint filed last year, which can be read in full here, alleged that Round Hill continued to use assets from the joint venture without permission, as well as “bullying and mistreatment perpetrated by [Round Hill] and its senior leadership against Zync.”
In October, Round Hill filed a motion to dismiss the case in which it disputed Zync’s allegations and argued that the court didn’t have jurisdiction over the matter.
Judge Analisa Torres of the US District Court for the Southern District of New York had not yet ruled on that motion when Round Hill and Zync jointly asked the court to dismiss the case with prejudice.
Zync says that in its 23 years of operation, it has secured more than 20,000 licenses and earned over $100 million for its clients.
Round Hill says it has some $900 million in assets under management, including nearly 200,000 songs in over 180 catalogs.Music Business Worldwide
