Feds Seize R. Kelly’s Money, Dua Lipa’s Copyright Clash & More of the Week’s Biggest Legal Stories

This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.

This week: Prosecutors move to seize R. Kelly’s funds held by Sony Music and Universal Music Publishing Group; Dua Lipa wins the first round in her copyright battle over “Levitating”; a federal judge rules that Tennessee’s anti-drag law is unconstitutional; and much more.

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THE BIG STORY: Feds Move to Seize R. Kelly’s Royalty Funds

In the wake of criminal convictions that will see him spend decades in prison, R. Kelly is also facing hundreds of thousands of dollars in fines and restitution payments. Last week, the feds told his record label and music publisher to help him pay up.

Prosecutors in Brooklyn asked a federal judge for so-called writs of garnishment against Sony Music and Universal Music Publishing Group (UMPG) — court orders that would compel the two companies to hand over funds tied to Kelly. The two companies are “in possession of property” belonging to Kelly, the filing said, that could be used to pay down the $504,289 he owes to victims and the government.

It’s unclear how much Sony Music and UMPG are holding in Kelly-tied money, but the feds aren’t the only ones trying to get at it.

R. Kelly victim Heather Williams, who won a $4 million civil judgment against the singer, is also seeking to tap into the Sony Music account — as is Midwest Commercial Funding, a property management company that won a separate $3.5 million ruling against Kelly over unpaid rent at a Chicago studio.

In March, the Illinois Supreme Court ruled that Williams had priority to the funds over Midwest Commercial Funding because she was the first to properly demand the money from Sony. But that ruling left unclear whether she’ll enjoy similar priority over federal prosecutors.

For the full story, go read the entire article, which includes access to the full legal documents filed in court.

Other top stories this week…

DUA LIPA WINS ROUND ONE – A federal judge cast serious doubts on a copyright lawsuit claiming Dua Lipa stole her smash hit song “Levitating” from a little-known reggae track by a band called Artikal Sound System, saying she’s seen no evidence that Lipa ever even heard the song she’s accused of copying.

ADIDAS DROPS YEEZY MONEY CASE – And just like that, it was over. After a whirlwind week of litigation, Adidas abruptly dropped a federal court case aimed at freezing $75 million held by Kanye West’s Yeezy brand. But the two companies will continue to battle it out in a private arbitration case, in which Adidas will likely argue that West’s “offensive conduct” caused the breakdown of their long-standing partnership.

KANYE SUED OVER PAPS CLASH – In other Kanye legal news, the embattled rapper was hit with a civil assault lawsuit over an alleged incident in which the rapper grabbed a paparazzo’s phone and threw it into traffic.

TENN. DRAG LAW RULED UNCONSTITUTIONAL – A federal judge ruled that Tennessee’s first-in-the-nation law restricting drag shows violates the First Amendment, barring prosecutors in Memphis from enforcing the new statute and sending the closely-watched legal battle to a federal appeals court.

DIDDY ACCUSES BOOZE GIANT OF RACISM – Sean “Diddy” Combs filed a scathing lawsuit against alcohol giant Diageo for allegedly breaching their partnership deal for a brand of tequila, leveling accusations of racism at the company and claiming it has treated his product line “worse than others because he is Black.”

HOV WINS $7M OVER COLOGNE DEAL – A New York state appeals court sided with Jay-Z in his long legal battle against a fragrance company called Parlux over a cologne endorsement deal that went bad, ordering the company to pay him nearly $7 million in unpaid royalties.

PRODUCER ACCUSED OF HARASSMENT – A new lawsuit filed in Los Angeles claims that Grammy-nominated dance music producer and DJ Paul Oakenfold repeatedly masturbated in front of his former personal assistant. He quickly denied the accusations, calling them “a calculated attempt to tarnish my reputation and extort money.”

SHEERAN CASE HEADS TO APPEAL – A month after Ed Sheeran won a high-profile jury verdict that his “Thinking Out Loud” did not infringe Marvin Gaye‘s “Let’s Get It On,” his copyright accusers formally launched their appeal at the U.S. Court of Appeal for the Second Circuit.

INDIE ROCKERS SETTLE CEREAL SPAT – The band OK Go reached a confidential settlement to end a bizarre legal battle with Post Foods over a new line of on-the-go cereal packages called “OK Go!,” which the band believed infringed the trademark rights to its name.

K-POP INSIDER TRADING? – Three employees at the record label HYBE could reportedly be prosecuted for insider trading in South Korea for allegedly using non-public information about K-pop group BTS’ planned hiatus before the news was given to investors.