A legal battle centers on whether Downtown was entitled to quickly kill a deal with a YouTube licensing partner that it says was involved with "parasitic content."
The United States Courthouse for the Southern District of New York is seen in Manhattan.
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A federal judge has denied Downtown Music’s bid to dismiss lawsuit claiming it dropped a YouTube licensing partner as a “sacrifice” to help win approval of its merger with Universal Music Group.
The case was filed by Blast Off Media, which offers free music for YouTube creators, over claims that Downtown destroyed its business by abruptly terminating a distribution deal. Downtown says it rightfully killed the partnership because Blast Off was linked to streaming fraud and violating YouTube’s rules.
