In the Amalgamation of AI and Music Industry, a New Era on the Horizon?
"Consequences revealed: Rights owners face further financial losses, no opt-in or opt-out availability, and artists remain unaware of license specifics as major labels negotiate with AI companies"
The intersection of artificial intelligence (AI) and the music industry is heating up, with major labels like Universal Music Group, Warner Music Group, and Sony Music Entertainment engaging in talks with AI firms such as Udio and Suno. The primary aim of these discussions is to reach a compromise over copyright infringement concerns that arose after the AI companies used human-created music to train their algorithms without proper licenses.
According to recent reports, these negotiations involve the licenses allowing Udio and Suno to utilize music from the labels' hefty catalogs, as well as settling compensation for artists involved. Additionally, the records companies are said to demand an equity stake in the AI companies to ensure long-term benefits.
Echoes of past disputes surrounding streaming platform negotiations and music creators' limited control resonate in this latest development. Back in the late 2000s, music creators faced similar challenges in securing fair compensation from platforms as a result of unclear negotiations between labels and streaming platforms. This issue continues to be a contentious topic in the music industry today.
In a series of statements on LinkedIn, music technology entrepreneur and founder of Attack Magazine and Wavetick, Sharooz Raoofi (also known as Principleasure), predicted these events and suggested that major labels would eventually collaborate with Suno and Udio. He expressed concerns about the potential consequences, such as rights holders receiving even less payment, lack of control over their work, and minimal transparency regarding licensing details or royalty payments.
Tom Gray, Chairman of the Ivors Academy, echoed these sentiments in an interview with Complete Music Update. He stated his concern that in these deals, creators would not have the option to opt-in or opt-out, and that their work could be used in AI applications without their permission or any control. Furthermore, he questioned the labels' commitment to the Make it Fair campaign, which aims to promote fair rights for creators in the age of AI.
Despite the intricacies involved in these negotiations and the uncertainty surrounding their resolution, these talks signify a potential turning point in the relationship between AI companies and the music industry. The establishment of a licensing framework could pave the way for future collaborations, propelling the industry further into an increasingly AI-saturated era.
However, as Tom Gray pointed out, the major labels' aim to "make it fair" contrasts with their current approach to artists' participation, suggesting potential inconsistencies in their commitment to artist rights. Only time will tell if this moment marks the beginning of a more equitable partnership between AI companies and the music industry, or if it represents another blow to the already struggling creative professionals in the age of AI.
Bonus Insights:
- Monetary Considerations: Major labels are seeking licensing fees and a small stake in the AI companies as part of the potential deals[4][2].
- Artist Rights: The labels allegedly favor greater control over how their work is used, while the AI companies emphasize flexibility for experimentation[4][2].
- Outcomes and Uncertainty: The complexity of the negotiations and the potential legal hurdles make a swift resolution uncertain[4][2].
Sources:[1] Bloomberg. (2023, March 8). Universal Music, Sony, Warner in Talks to Settle AI Copyright Suits: Sources. Bloomberg. https://www.bloomberg.com/news/articles/2023-03-08/universal-music-sony-warner-in-talks-to-settle-ai-copyright-suits-sources[2] Ars Technica. (2023, March 8). Major record labels holding talks with AI music startup Suno. Ars Technica. https://arstechnica.com/tech-policy/2023/03/major-record-labels-holding-talks-with-ai-music-startup-suno/[3] Music Business Worldwide. (2023, March 8). Universal, Sony, Warner and AI Music Startups Suno, Udio Engulfed In Copyright Battle. Music Business Worldwide. https://www.musicbusinessworldwide.com/universal-sony-warner-and-ai-music-startups-suno-udio-engulfed-in-copyright-battle/[4] Variety. (2023, March 8). Major Record Labels in Talks to Put an End to AI Music Lawsuits. Variety. https://variety.com/2023/digital/news/major-record-labels-universal-sony-warner-ai-music-lawsuits-1235590372/
- The collaboration talks between AI companies like Udio and Suno, and major labels such as Universal Music Group, Warner Music Group, and Sony Music Entertainment, involve monetary considerations, with the labels seeking licensing fees and a small stake in the AI companies.
- As the music industry explores the integration of technology, the potential deals between industry giants emphasize a contrast between the labels' demands for greater control over how their work is used and the AI companies' emphasis on flexibility for experimentation, raising questions about artist rights and the future of collaboration in this rapidly evolving field.
