{"id":149903,"date":"2025-09-11T21:39:11","date_gmt":"2025-09-11T21:39:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/149903\/"},"modified":"2025-09-11T21:39:11","modified_gmt":"2025-09-11T21:39:11","slug":"what-would-an-ai-music-license-even-look-like-its-complicated","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/149903\/","title":{"rendered":"What Would An AI Music License Even Look Like? It&#8217;s Complicated"},"content":{"rendered":"<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tTo get a sense of how complicated it is to grant an AI company a license to train its algorithm on copyrighted work, imagine for a moment that you run a European collecting society that distributes royalties to songwriters and publishers. For the sake of this example, let\u2019s say that this organization is called COMPLEX (the Cooperative for Original Music Publishing Licensing Excellence) and that it represents public performance and mechanical rights for the fictional country of Freedonia, which it licenses for revenue of about $200 million a year.<\/p>\n<p>\t\t\t\t\tRelated\t\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/www.billboard.com\/pro\/stim-ai-music-licensing-framework-songfox-deal\/\" class=\"c-lazy-image__link lrv-a-unstyle-link\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/stim-logo-billboard-1800.jpg\" data-lazy-src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/stim-logo-billboard-1800.jpg\" alt=\"STIM logo\" data-lazy- data-lazy- height=\"\" width=\"\"\/><\/p>\n<p>\t\t\t<\/a><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tMany AI companies are <a href=\"https:\/\/www.billboard.com\/pro\/ai-firms-steal-music-scrape-copyright-icmp-investigation\/\" rel=\"nofollow noopener\" target=\"_blank\">already scanning the work you control<\/a> \u2014 I\u2019m skipping the usual \u201callegedly,\u201d since this is hypothetical \u2014 and you want to make them pay to do so. Then, one day, another AI company comes to you and says it wants to do just that \u2014 scan all of your works and use them to train its algorithms. In return, it\u2019s willing to give you a one-time payment of $300 million, with no further obligations on either side. All you have to do is sign the deal, take the money and\u2026 then what?<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tWould you take the deal? The question takes on new urgency now that STIM, the Swedish collecting society, announced on Sept. 9 that it had set up the <a href=\"https:\/\/www.billboard.com\/pro\/stim-ai-music-licensing-framework-songfox-deal\/\" rel=\"nofollow noopener\" target=\"_blank\">first collective licensing deal for AI training<\/a>. That followed an <a href=\"https:\/\/www.billboard.com\/pro\/elevenlabs-ai-music-model-merlin-kobalt-licenses-details\/\" rel=\"nofollow noopener\" target=\"_blank\">early-August deal<\/a> between ElevenLabs and Kobalt and Merlin. It is still unclear in the U.S. whether the copying of works to train an AI algorithm even requires a license, so these deals should probably be seen as experiments.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tI\u2019d argue that you shouldn\u2019t take the deal \u2014 if you even could, based on what rights you controlled for which territories. Analyzing a work requires ingesting it, which in turn requires making a copy. That involves copyright law, under which this would be considered a mechanical reproduction. It is not settled as to whether using an AI algorithm involves making a copy, but it\u2019s obvious that training one does. So it\u2019s possible \u2014 not definite, but possible \u2014 that each AI company only needs to copy a work once.<\/p>\n<p>\t\t\t\t\tRelated\t\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/www.billboard.com\/pro\/ai-firms-steal-music-scrape-copyright-icmp-investigation\/\" class=\"c-lazy-image__link lrv-a-unstyle-link\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/1757626750_461_glennharvey_2025_08_28_billboard_f1-1800.jpg\" data-lazy-src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/1757626750_461_glennharvey_2025_08_28_billboard_f1-1800.jpg\" alt=\"AI scraping\" data-lazy- data-lazy- height=\"\" width=\"\"\/><\/p>\n<p>\t\t\t<\/a><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tSo that $300 million payment could be the only one you\u2019d ever get. And once you get it, your songwriters will have to compete with an algorithm that can use their works to churn out an enormous volume of similar music. And that assumes you could even sign such a deal without the permission of rightsholders \u2014 both the STIM and Kobalt deals are opt-in \u2014 plus figure out where the deal would apply. But the big issue is that rightsholders essentially need to find a way to control the horse after it has left the barn.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tThe 4 billion Euro question \u2014 based on CISAC\u2019s estimate of the value of generative AI music in 2028 \u2014 is how rightsholders can use the rights they can license as a lever to exercise some control over the rights they can\u2019t. Some of this is just practical \u2014 they need to have some sense of how much algorithms rely on different works in order to pay out royalties from whatever agreements they make. (In the example of the $300 million offer, how would COMPLEX deal with that revenue?) But some of it is strategic: As AI uses copyrighted songs to create new ones, rightsholders deserve an ongoing revenue stream, both because these new creations are built on their work and because those creations will inevitably compete with theirs.<\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\t<a href=\"https:\/\/www.gema.de\/en\/w\/gema-presents-first-ai-licensing-model\" rel=\"nofollow noopener\" target=\"_blank\">GEMA\u2019s licensing model<\/a>, presented a year ago, in September 2024, says that \u201ca one-off lump sum payment for training data is not nearly sufficient to compensate authors in view of the revenues that can be generated.\u201d The idea is that songwriters get paid based on how often their works are used to generate new ones. STIM\u2019s license, really a pilot project, takes this a step further, compensating rightsholders with a share of revenue when their works are used by generative AI algorithms and potentially then again when AI music based on their work is used.<\/p>\n<p>\t\t\t\t\tRelated\t\t<\/p>\n<p>\t\t\t<a href=\"https:\/\/www.billboard.com\/pro\/elevenlabs-ai-music-model-merlin-kobalt-licenses-details\/\" class=\"c-lazy-image__link lrv-a-unstyle-link\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>\t\t\t\t\t\t<img decoding=\"async\" class=\"c-lazy-image__img lrv-u-background-color-grey-lightest lrv-u-width-100p lrv-u-display-block lrv-u-height-auto\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/eleven-labs-logo-billboard-1800.jpg\" data-lazy-src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/09\/eleven-labs-logo-billboard-1800.jpg\" alt=\"In this photo illustration, the ElevenLabs logo is seen displayed on a smartphone screen.\" data-lazy- data-lazy- height=\"\" width=\"\"\/><\/p>\n<p>\t\t\t<\/a><\/p>\n<p class=\"paragraph larva \/\/ lrv-u-margin-lr-auto  lrv-a-font-body-m   \">\n\tThat\u2019s one hell of a lever. Not only does this agreement impose an obligation on AI companies that license works for training purposes, it puts that obligation on the work they create. It\u2019s especially interesting because in most countries, music created by AI is not covered by copyright, so it can be used freely. This would potentially give rightsholders the ability to benefit from that work under contractual rules. If it works, of course. It\u2019s hard to know if it will \u2014 and it\u2019s hard to imagine that the AI licenses that will be used in 2035 will look anything like these. But we are seeing the first moves to shape a new business, and they could be quite influential. Next week I will write about how they will be influential in ways that aren\u2019t immediately obvious.<\/p>\n","protected":false},"excerpt":{"rendered":"To get a sense of how complicated it is to grant an AI company a license to train&hellip;\n","protected":false},"author":2,"featured_media":149904,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,76169,74],"class_list":{"0":"post-149903","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-follow-the-money","12":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/149903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=149903"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/149903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/149904"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=149903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=149903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=149903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}