In 2020, Meta introduced a feature called “Reels” which allows Instagram users to create, share, and watch videos up to 20 minutes long, which can then be used, shared or downloaded by other users. The feature was expanded to FaceBook in 2021.
Music publisher Wixen is the exclusive licensee and/or owner of more than one hundred thousand musical compositions in its catalog and also is the administrator and exclusive licensee of certain sound recordings. Meta began to license Wixen content in 2018. Meta has announced that Reels is “on track to generate $50 billion in advertising revenue in the next 12 months.”
Early in 2025, Wixen and Meta began to negotiate an extension to their license agreement, for which Meta proposed much lower royalty payments. When Wixen refused to accept those terms, Meta allegedly withdrew access to some of Wixen’s licensed music arbitrarily while other music remains available.
Meta is also accused of arbitrarily terminating the ability for its users to use the licensed catalog, which impacts both enjoyment by end-users and relations with business partners. Wixen said that “Meta unilaterally chose to pull Wixen’s current and former clients from its platforms while the Wixen-Meta License was still in place.
“On information and belief,” according to a lawsuit by Wixen, “Meta’s reason for slashing payments to songwriters is (also) to replace human-generated, royalty-bearing music with royalty-free AI-generated music.”
In addition, Wixen contends that Meta’s right to use its (remaining, unblocked) licensed content ended no later than December 10, 2025, but “Since the expiration of the Meta License, Meta has, without authorization or compensation, reproduced and made the Works available to its Apps users via Reels and the Music Library, resulting in thousands of audiovisual works incorporating, without authorization or compensation.”
Some Wixen-originated music was said to still be available through Reels on January 23, the date that Wixen complaint was filed.
About the lawsuit
Wixen seeks nearly $50 million in statutory damages (331 musical works, at a maximum of $150,000 per work ($49,650,000), plus a minimum of $20 million for reputational damage and interference with business relations.
The lawsuit was brought in Los Angeles County because Wixen is based in the County, as are many of the artists whose works Wixen distributes; and also, because millions of users of Meta services – FaceBook, Instagram and WhatsApp – reside there.
Why it matters
Also, “Coinciding with its plan to drastically cut payments to human songwriters, including Wixen’s clients,” claims Wixen, “Meta has committed hundreds of billions of dollars to building artificial intelligence data centers in the U.S. … These staggering financial commitments come as Meta is building its new artificial intelligence tool, ‘AudioCraft,’ which generates music from text prompts and directly threatens the future and livelihood of musical artists.”
Wixen also reasons that “Meta’s success or failure at slashing royalties now will have a profound effect on how other social media platforms approach music royalties. Given these serious implications for its clients, Wixen refused to accept the exploitative, below- industry rates for its clients. The Wixen-Meta License was not renewed.”
Further reading
Wixen Music Publishing, Inc. v. Meta Platforms, Inc., a Delaware Corporation. Document #1. Complaint. US District Court for the Central District of California, Western Division
Landing page. All documents. US District Court for the Central District of California, Western Division
