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American rapper Vanilla Ice later released a song featuring an interpretation of "Play That Funky Music". Based on this single, the independent record label Ichiban Records signed Vanilla Ice to a record deal, releasing the album Hooked in January 1989, containing "Play That Funky Music" and its B-side, "Ice Ice Baby". Songwriter Robert Parissi was not credited. Parissi was later awarded $500,000 in a copyright infringement lawsuit.
Although it did not initially catch on, its B-side, "Ice Ice Baby", gained more success when a disc jockey played that track instead of the single's A-side.
Following the success of "Ice Ice Baby", "Play That Funky Music" was reissued as its own single (with new lyrics and remixed drums), and peaked at No. 4 on the US Billboard Hot 100 and No. 10 in the UK. The song's accompanying music video received heavy rotation on MTV Europe.
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