Apollo Global Management Inc. and its Venetian Las Vegas were sued over accusations that they profited from a “brazen” scheme at the resort’s karaoke lounge that ripped off songs from YouTube rather than paying a commercial music service.
Sybersound Records Inc., a record label distributed by Universal Music Group, says the Kamu Ultra Karaoke lounge engaged in “naked theft and piracy” at its “Sin City” parties by letting customers choose Sybersound tracks off YouTube that are only for non-commercial listening, according to the complaint in Los Angeles federal court.
Sybersound — which says its Party Tyme system is used in more than 4,000 nightclubs and restaurants — is seeking damages to the tune of at least $264 million from the asset management giant, the Venetian and the owner of the Kamu karaoke lounge.
The karaoke lounge is located in the Grand Canal Shoppes, a retail mall at the resort managed by Brookfield Properties, which is also a defendant in the suit.
An Apollo spokesperson declined to comment on the lawsuit. Representatives of the Venetian and Brookfield didn’t immediately respond to email messages seeking comment.
Apollo completed its acquisition of the Venetian last year, in collaboration with the real estate investment trust Vici Properties Inc.
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The Venetian touts the Kamu lounge as the first high-end karaoke club on the Las Vegas Strip, offering 40 soundproof suites with advanced software “an unmatched audio and visual experience.”
Los Angeles-based Sybersound claims the theft of its recordings is helping generate “substantial” profit, with some private rooms fetching a minimum of $4,000 after 10 p.m. “to which are added bottle service, food, and other amenities.” The record label is demanding $150,000 per copyright infringement under federal law.
The case is Sybersound Records Inc v. Apollo Global Management, 23-cv-09750, US District Court, Central District of California (Los Angeles).
(Updates with lounge’s location in Grand Canal Shoppes. An earlier version of the story corrected a description of the record label.)