Canva Faces US Lawsuits Over Music Licensing
Synopsis
Canva and US music-rights specialist Crunch Digital are locked in competing lawsuits over music licensing concerns, confidential data and payments for additional work.
Key Highlights
- Canva and US music-rights specialist Crunch Digital are suing each other.
- Crunch claims Canva expressed issues with music licensing but then cut off their commercial relationship
- Canva said Crunch had handed over music-usage data to royalty collection platform Pathfinder Royalties in breach of the confidentiality rules.
- The conflict relates to music licensing, trade secrets and paying for extra work.
Australian design business Canva is facing a legal battle with US music-rights expert Crunch Digital after their commercial partnership collapsed amid disputes over music licensing, confidential data and payment issues.
All under a previous class action that has been brought against both companies in the state of California, Los Angeles.
At the heart of the dispute is a settlement founded on January 1, 2025. As part of the deal, Crunch offered various services to Canva that included music reporting, rights clearance, research and other music-related work.
Crunch Digital Raises Music Licensing Concerns
According to Crunch, Canva increased its expectations of work beyond the areas included in the contractor’s standard monthly fees.
The complaint alleges that when Load 1 moved to the next round, Crunch thought it would provide Canva with new terms and greater compensation, given the added work. Crunch also claims that it identified potential outstanding music licensing issues affecting Canva’s ability to operate, which it raised with the company.
The complaint gives no elaboration as to what the questions about licensing were. It does not name specific songs, music labels, publishers or other rights holders associated with the problems. Crunch says that after flagging the issues and requesting further payment, its relationship with Canva soured.
Crunch Data Can Accuse Canva Of Trading Secrets
On a separate front, Canva has filed its own claim against Crunch for confidential information. Canva claims Crunch leaked proprietary information regarding the use of music on Canva’s platform to Pathfinder Royalties (a related third-party royalty provider).
The other allegation was therefore entirely separate. Crunch is disputing how Canva has treated confidential music-usage information and Chico is organising to make sure the company pays Crunch for its work. No side of the allegations has been established as fact by either court.
Why the Dispute Matters to Canva
Platforms that allow users to create videos, presentations etc. using music tend to find the music licensing really painful and complex.
The companies have to make sure that all music used through their services is properly cleared and relevant rights holders, where appropriate, are compensated. The dispute comes as the Australian company continues to grow its creative tools and services for businesses, creators and other customers worldwide.
The case may also emphasise the need to specify responsibility in contracts where business relationships require specialist work and involve sensitive commercial information.
What It Means for Entrepreneurs
For entrepreneurs, the Canva dispute is a clear reminder that contracts should specify what work you are doing, how increased workloads will be managed and how additional payments will happen. This will avoid potential arguments or good relations being soured when a project turns into something of much greater proportions than first envisaged.
It also emphasises safeguarding sensitive business data. Businesses that utilise outside experts ought to clarify what is in garages, who can access it and where information goes when the business relationship closes.
Source: Capital Brief
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
