Crumbl’s aggressive use of social media over the years could prove costly.
Warner Music Group, including companies like Atlantic Records and Bad Boy Records, among others, has filed a lawsuit against the Utah-based Crumbl, saying the dessert chain repeatedly used its artists’ music without permission in social media ads over several years.
The lawsuit, filed last week in a Utah federal court, claims that Crumbl used at least 159 sound recordings by Warner artists such as Dua Lipa, BTS, Taylor Swift, Lizzo and Beyoncé without consent. Warner Music counted 286 instances in which these recordings were used in Crumbl videos, and argued that the cookie concept did not take them down even after it was notified of the copyright violations.
Warner also believes that there are other instances in which Crumbl, along with social media “influencers” it partners with, used its recordings without permission.
The music group is asking a court to award it as much as $150,000 for each work used without permission, or nearly $24 million.
“Months after receiving the cease-and-desist letter, Crumbl not only continued to exploit many of the infringing Crumbl videos, but also posted new infringing Crumbl videos,” the lawsuit said. The lawsuit also points to a video posted from Crumbl’s TikTok account in which the company said that “legal said” it “can’t use any trending audios.”
In a statement, Crumbl said it is reviewing the lawsuit.
"Crumbl is aware of the legal action initiated by Warner Music Group and is actively reviewing the matter. Crumbl respects the rights of artists and creators and will respond appropriately through the legal process. In the meantime, we remain focused on innovation, strengthening our community, and bringing friends and families together."
Crumbl is not the first restaurant chain sued over copyright infringement. The Beastie Boys sued Chili’s last year for unauthorized use of its song “Sabotage.” Sony Music Entertainment sued Marriott International last year for similar reasons.
The rapid growth of TikTok has created such issues for companies as the push for content often leads to demand to use trending music. When companies do this, however, it shifts from simple posts by regular users to corporate marketing.
Crumbl, which operates more than 1,000 locations and is looking for a buyer, has used social media aggressively since its emergence in 2017. Those videos have played a key role in the chain’s growth and ongoing popularity. The company has 9.8 million followers on TikTok and 6.1 million on Instagram.
Crumbl is known for its revolving menu of cookies and, more recently, cakes and pies. According to the lawsuit, the company will use music associated with some of the items in the video, such as the use of the song “Blueberry Faygo” by Lil Mosey to promote a blueberry cheesecake cookie.
A Kentucky Butter Cake cookie was promoted with the song “Butter” by BTS, the lawsuit said.
The lawsuit also argued that Crumbl represented that the music was “original audio” when it was copyrighted. The complaint noted that both TikTok and Instagram forbid unauthorized use of copyrighted music.
Warner in its complaint also referred to Crumbl’s own history of pushing back against copyright infringement. It cited the company’s since-settled lawsuit against the cookie chain Dirty Dough, and Crumbl over the years has aggressively gone after upstart companies that it said mimicked its business
“Crumbl is not unfamiliar with intellectual property laws and enforces its own intellectual property rights by filing lawsuits against companies that allegedly infringe against Crumbl’s intellectual property,” the lawsuit said.
“Crumbl has earned hundreds of millions of dollars in revenue and has no shortage of legal resources,” it added.
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