What is the RICO Act? Drake sues UMG and Spotify over allegedly violating federal law to promote Kendrick Lamar’s diss track

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The feud between Drake and Kendrick Lamar has taken a new twist. The Canadian rapper has sued Universal Music Group (UMG) and Spotify, alleging that they artificially promoted Lamar’s diss track Not Like Us, which was aimed at him.

In a report by Billboard, Drake’s company, Frozen Moments LLC, filed the petition in a Manhattan court on Monday, November 25. It claimed that UMG and Spotify engaged in an illegal “scheme” that involved bots, pay-to-play agreements, and other deceptive methods to boost the track’s streaming numbers and radio plays.

Drake’s attorneys accused UMG of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal act. However, UMG denied these allegations in a statement to Sky News, calling them “offensive and untrue.”

“We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear.”

According to a report in Vulture, UMG owns both Drake’s and Lamar’s labels, Republic Records and Interscope Records. The singers have been associated with the music company throughout their careers.


What is the RICO Act?

According to NOLO, a federal law passed in 1970, it is designed to combat organized crimes, usually consisting of deceptive business practices and fraudulent advertising. The act involves a wide range of racketeering activities, including murder, kidnapping, drug trafficking, bribery, gambling, money laundering, embezzlement, slavery, and counterfeiting.

To secure a conviction under RICO, the government must prove that the defendant engaged in at least two or more racketeering practices within 10 years. These practices must be related to an "enterprise” involved in the ongoing criminal activity.

Violations of the RICO Act result in a $25,000 fine and 20 years of imprisonment. In addition to these criminal penalties, violators are required to forfeit any business or property derived from their illegal offenses.


Why did UMG choose to boost Lamar’s music?

In a report by Billboard, Drake’s attorney revealed why Universal Music Group (UMG) chose to boost Lamar’s music. This is partially due to internal corporate dynamics at UMG and Interscope Records, where financial incentives for executives depend upon “specific UMG divisions, rather than the performance of UMG more generally.”

“Executives at Interscope have been incentivized to maximize the financial success of Interscope through the promotion of ‘Not Like Us’ and its revitalizing impact on the artist’s prior recording catalog,” Drake’s attorneys further added.

They also mentioned that Drake tried to discuss this with UMG before heading to the court, but the music company has “no interest in taking responsibility for its misconduct.” They also said that UMG has “pointed the finger” at Lamar, insisting that Drake should sue his rival rather than the label.

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Edited by Sangeeta Mathew