What's Happening?
DSW, a popular shoe store, is currently involved in multiple copyright infringement lawsuits filed by major record labels and music publishers. The lawsuits allege that DSW's promotional videos, posted by influencers on social media platforms, contained unlicensed music owned by Warner Music Group, Sony Music Entertainment, Universal Music Group, and BMG Rights Management. These influencers, who have commercial relationships with DSW, are not employees of the company, and the videos were not posted on DSW-owned accounts. The music companies are pursuing 'secondary liability' claims, arguing that DSW benefited from or failed to police the use of unlicensed music, thus making them responsible for the infringement.
Why It's Important?
The lawsuits against DSW highlight the growing risk for companies using influencer marketing strategies. As social media becomes a dominant platform for brand promotion, the legal landscape surrounding copyright infringement is evolving. Brands face potential liability for unlicensed music used in influencer content, which can lead to costly disputes. This situation underscores the importance of companies implementing robust contracts and monitoring influencer content to mitigate risks. The outcome of these cases could set precedents for how secondary liability is applied in the context of influencer marketing, affecting numerous businesses that rely on social media for advertising.
What's Next?
The legal proceedings involving DSW are ongoing, with courts yet to issue decisions on the merits of the cases. If these cases proceed past summary judgment, they may clarify the extent of secondary liability in influencer marketing. Companies are advised to proactively draft contracts, educate their teams on copyright rules, and continuously monitor influencer content to avoid similar legal challenges. The resolution of these lawsuits could influence future litigation strategies and the approach brands take in managing influencer relationships.
