Activision drops lawsuit over viral TikTok audio clip

The Activision booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017. REUTERS/ Mike Blake/File Photo Purchase Licensing Rights
Aug 11 (Reuters) - Video-game giant Activision (ATVI.O) has dropped a two-week-old lawsuit against music critic and internet personality Anthony Fantano that sought to block him from claiming that Activision misused a viral audio clip he created, according to a filing in California federal court.
Activision told the court on Thursday that it was dismissing its own case with prejudice, which means it cannot be refiled.
A spokesperson for Activision declined to comment on the dismissal on Friday. Representatives for Fantano did not immediately respond to a request for comment.
Fantano is best known as an internet-based music critic through his YouTube page The Needle Drop. A TikTok video of his reaction to a video of a pizza being sliced - where he exclaims "it's enough slices!" - went viral in 2021.
Activision's lawsuit said Fantano made the clip's audio freely available for other TikTok creators to reuse based on the social media platform's terms of service. Activision used the audio in a TikTok video showing a pair of custom sneakers being made with imagery from its "Crash Bandicoot" video games.
Fantano allegedly sent Activision a cease-and-desist letter and demanded a settlement payment in June. Activision's lawsuit said it later took the video down, but Fantano's attorney still threatened to sue for violating his publicity rights and falsely implying he endorsed the company unless it agreed to settle for a "six-figure sum."
According to the lawsuit, Fantano's lawyer said other entities had settled disputes over the audio for similar amounts. The complaint said Fantano's threats were part of a "scheme" where he "selectively threatens to sue certain users of the Slices Audio unless they pay him extortionate amounts of money."
Fantano has not responded to Activision's allegations.
The case is Activision Publishing Inc v. Fantano, U.S. District Court for the Central District of California, No. 2:23-cv-05989.
For Activision: Marc Mayer of Mitchell Silberberg & Knupp
For Fantano: attorney information not available
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