Canva and Crunch Digital file duelling lawsuits over music licensing in Los Angeles
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- #31
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- 1
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What happened
Canva and the US music-rights firm Crunch Digital were suing each other in the Superior Court of California, County of Los Angeles, Capital Brief reported, describing the cases as duelling lawsuits over music licensing. Crunch sued Canva over a breach of contract. Canva brought its own suit alleging that Crunch improperly disclosed confidential music-usage data to Pathfinder Royalties, a third-party royalty platform.
The contract at the centre of the dispute took effect on 1 January 2025 and covered specialised music-industry reporting, clearance, research and related operational services for fixed monthly fees. According to Crunch's complaint, Canva co-founder and chief operating officer Cliff Obrecht signed it for Canva. Crunch alleged that Canva repeatedly expanded the work beyond what the fixed fees covered while giving it reason to expect revised terms and additional compensation, and that it was pushed out after raising potential licensing issues affecting Canva's operations. Capital Brief reported no amounts, carried no statement from either company, and gave no detail on which licensing concerns were raised.
Key points
- Crunch Digital sued Canva over a breach of contract; Canva sued over alleged disclosure of confidential music-usage data.1
- Both cases are in the Superior Court of California, County of Los Angeles.1
- The services contract took effect on 1 January 2025 and set fixed monthly fees.1
- Canva says the data went to Pathfinder Royalties, a third-party royalty platform.1
- No damages or other amounts were reported.1
Why it matters
Crunch says it raised potential licensing issues affecting Canva's operations. The report does not identify them, so the extent of any rights exposure behind Canva's music content is not stated.
Neither side's complaint carries a reported amount, so the dispute cannot yet be set against Canva's financials or its valuation.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Funding round | Jan 8, 2018 | $1.0B | $40M | Blackbird Ventures |
| Funding round | May 20, 2019 | $2.5B | $70M | Unknown |
| Funding round | Oct 16, 2019 | $3.2B | $85M | Bond Capital |
| Funding round | Jun 22, 2020 | $6.0B | $60M | Blackbird Ventures and Sequoia Capital China |
| Funding round | Apr 6, 2021 | $15B | $71M | Dragoneer and T. Rowe Price |
| Funding round | Sep 14, 2021 | $40B | $200M | T. Rowe Price |
Updated
Fact-check
- Crunch Digital sued Canva for breach of contract in the Superior Court of California, County of Los Angeles.Confirmed by [1] Capital Brief: the two companies are suing each other in the Superior Court of California, County of Los Angeles; Crunch is suing Canva over a breach of contract.Verified
- Canva sued Crunch, alleging it improperly disclosed confidential music-usage data to Pathfinder Royalties, a third-party royalty platform.Confirmed by [1] Capital Brief: Canva alleges Crunch improperly disclosed confidential music-usage data to the third-party royalty platform Pathfinder Royalties. The article does not say which suit was filed first.Verified
- The contract took effect on 1 January 2025 and was signed for Canva by co-founder and COO Cliff Obrecht.Confirmed by [1] Capital Brief: the agreement took effect on 1 January 2025; per Crunch's complaint, Obrecht signed it on Canva's behalf.Verified
- Crunch alleges Canva expanded the work beyond the fixed monthly fees and that it was pushed out after raising potential licensing issues.Confirmed by [1] Capital Brief, which reports these as Crunch's allegations and says the complaint does not specify the licensing concerns.Verified
- No amounts have been reported in either lawsuit.Confirmed by [1] Capital Brief: the article contains no dollar amounts and no comment from either company.Verified
Sources
- [1]Capital Brief (opens in a new tab)Canva in duelling US lawsuits over music licensing
