Warner Music Group initiated a copyright infringement lawsuit against DSW Designer Shoe Warehouse and its parent company, Designer Brands Inc. Warner Music Group accuses DSW of using over 200 recordings and compositions owned by Warner Music Group in its social media marketing efforts on platforms like TikTok and Instagram without obtaining the necessary licenses, including use by influencers whose services DSW engaged as part of its social media marketing. The potential damages sought by Warner could exceed $30 million, given the maximum statutory damages of $150,000 per infringed musical work.
Implications for Businesses
This case highlights the critical importance of understanding and complying with intellectual property laws in the digital marketing landscape. Music and other creative expressions like photographs, movies, and graphical works are protected by federal copyright laws. Business owners should be aware that the unauthorized use of any copyright-protected materials on a website or social media platform opens the door for potential liability risk from copyright owners. Even the use of music on a social media post where the music is provided within the social media platform can be risky, as most social media platforms only allow such music to be used for non-commercial purposes.
As demonstrated by the DSW case, even well-established companies with a history of licensing music for traditional advertising can find themselves entangled in legal disputes if they neglect to secure proper permissions for social media use. The rise of influencer marketing further complicates this, as businesses must ensure that both their own content and their influencers' content adheres to intellectual property laws. Failure to comply can result in legal action being taken, financial penalties, and reputational damage.
To avoid potential legal challenges, businesses should prioritize establishing a robust policy for marketing and social media use that ensures compliance with copyright and other laws. This includes consulting with legal experts to both understand the nuances of copyright law and secure appropriate licenses for any music used in marketing efforts. By taking these proactive steps, businesses can safeguard themselves against infringement claims and continue to leverage the power of popular music and other materials in their social media marketing strategies effectively and legally.
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