```html Internet Money Sues Elliot Grainge's 10K Projects Over Alleged Breach of Contract Internet Money, the record label founded by Taz Taylor, has filed a lawsuit against Elliot Grainge's 10K Projects, alleging breach of contract and fiduciary duty. The suit, filed in Los Angeles Federal Court on Tuesday, claims that 10K Projects withheld millions of dollars in profits owed to Internet Money as part of their joint venture agreement.

Allegations of Misconduct and Profit Dilution The lawsuit outlines a series of alleged contract violations and misconduct, including claims that 10K Projects knowingly cross-collateralized accounts and evaded paying Internet Money's rightful share of profits. According to the complaint, 10K Projects engaged in a "consistent and repeated pattern of violations and breaches of its obligations under the Agreement in numerous ways."

A key point of contention revolves around the 2020 hit song "Lemonade," which peaked at No. 6 on the Billboard Hot 100. Internet Money alleges that 10K Projects "diluted" and "effectively gave away" profits from the song by providing a $500,000 advance to an artist and then renegotiating the agreement without Internet Money's approval. The suit also claims that 10K Projects failed to execute a profit participation agreement with Taylor regarding artist Iann Dior and has obstructed requests for an audit of the company's finances.

Joint Venture Origins and Expansion Internet Money and 10K Projects initially entered into a joint venture in August 2019, with the goal of signing and developing artists under a 50/50 net profit split. In 2020, the agreement was amended to extend the JV through June 2024. The lawsuit claims that under the agreement, 10K Projects was required to obtain approval from Internet Money for all creative and business decisions, including any reallocations of A&R and marketing costs. Internet Money alleges that 10K Projects failed to comply with these requirements, unilaterally incurring and charging "tens of millions of dollars in deductions" without the necessary approval.

Industry Experts Weigh In "This lawsuit highlights the increasing scrutiny surrounding joint ventures in the music industry," says entertainment lawyer Debra Katz. "While these partnerships can be lucrative, they also require a high degree of transparency and adherence to contractual obligations. Disputes over profit sharing and creative control are common, and this case underscores the importance of clear and comprehensive agreements."

Music industry analyst Paul Grein adds, "The allegations against 10K Projects, if proven true, could have significant ramifications for the label and its reputation. The success of 'Lemonade' was a major milestone for both Internet Money and 10K, and any mismanagement of those profits could damage future partnerships."

10K Projects' Rise and Warner Music Group Elliot Grainge, who assumed the role of CEO of Atlantic Music Group in October 2024, has built 10K Projects into a prominent label, now housed under Warner Music Group. The label boasts a roster of successful artists, including Trippie Redd and Ice Spice. As of press time, representatives for 10K Projects have declined to comment on the pending litigation.

Legal Recourse and Damages Sought Internet Money is seeking millions of dollars in damages, citing causes of action including breach of contract, accounting, fraudulent inducement, and unjust enrichment. The outcome of this lawsuit could set a precedent for future disputes within the music industry, particularly those involving joint ventures and profit-sharing agreements.

Historical Context of Label Disputes This lawsuit arrives amidst a historical backdrop of disputes between artists, producers, and labels regarding fair compensation and creative control. From the early days of rock and roll to the rise of hip-hop and electronic music, disagreements over royalties, publishing rights, and creative input have been a recurring theme. The digital age has only amplified these challenges, as streaming services and new technologies have complicated the landscape of music ownership and distribution.

The case between Internet Money and 10K Projects serves as a reminder of the importance of clearly defined contracts, transparent accounting practices, and open communication within the music industry. As the industry continues to evolve, artists and labels must adapt to new challenges and ensure that all parties are treated fairly and equitably. ```