This week, Apple Music told partners it will begin applying “Made With AI” labels to tracks materially generated on platforms such as Suno — while pushing the tagging responsibility onto record labels and distributors.
Meanwhile, Round Hill sued Suno and Anthropic, seeking up to $1 billion from each company in separate copyright infringement cases, insisting it has no intention of settling either suit.
Elsewhere, Universal Music Group struck an exclusive, long-term global deal with Apple Corps for The Beatles’ merchandise, licensing, and e-commerce.
And Spotify expanded its share buyback program by $1.5 billion, raising its total authorization to around $2.2 billion.
Plus, Warner Music Group CEO Robert Kyncl defended his company’s Suno licensing deal as UMG and Sony press on with their lawsuit against the AI music platform.
Here are some of the biggest headlines from the past few days…
1. Apple Music to slap AI labels on Suno tracks – but pushes the onus onto record companies
Apple Music has told partners that music “materially generated” on AI platforms such as Suno will carry a “Made With AI” label on the service from later this year.
At least, that is, if record labels and distributors tag the music with the relevant metadata before it reaches the platform.
The move was announced in a message to industry partners from Apple on Thursday (August 20), obtained by MBW. (MBW)
2. Round Hill is suing Suno and Anthropic for up to $1B apiece. It isn’t looking to settle.
Round Hill Music has filed copyright infringement lawsuits against Suno and Anthropic – and says it has no intention of settling either one.
The complaints were filed on Monday (August 17) in the US District Court for the Northern District of California.
Each seeks statutory damages of up to USD $150,000 per work willfully infringed. Round Hill says the total in each case could run into “hundreds of millions of dollars and potentially approach or conceivably exceed $1 billion“. (MBW)
3. UMG strikes global deal for The Beatles’ merch, licensing, and e-commerce
Universal Music Group has signed an exclusive, long-term global partnership with Apple Corps Ltd. covering merchandise, licensing, and e-commerce for The Beatles.
The agreement was announced on Wednesday (August 19).
It hands UMG worldwide physical and digital merchandise rights for the band and builds on Universal’s existing stewardship of The Beatles’ recorded music catalog. (MBW)
4. Spotify expands its share buyback program by $1.5B, raising total authorization to around $2.2B
Spotify has increased the size of its share repurchase program by an additional USD $1.5 billion.
The company’s Board of Directors approved the increase, which Spotify confirmed in a press release on Thursday (August 20).
With $723 million left under the existing program, the increase raises Spotify‘s total authorization to approximately $2.223 billion. (MBW)
5. Robert Kyncl justifies Suno deal, as UMG and Sony press on with lawsuit: ‘In my opinion, you embrace it.’
Up until last week, Robert Kyncl’s position vis-à-vis Suno was – in his sphere of the music biz – a lonely one.
Nine months ago, the Warner Music Group CEO agreed to drop WMG’s lawsuit against Mikey Shulman’s company, whilst agreeing to a go-forward licensing deal with the gen-AI platform.
As part of that agreement, Suno publicly committed to limiting the number of downloads its users can pull from the platform (a move it announced last week), while also promising to launch an entirely new model licensed by industry partners (which it says is coming). MBW hears that WMG also banked equity in Suno as part of the pact. (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMI here. Music Business Worldwide
This week’s edition of Music Business Worldwide’s Weekly Round-up highlights significant developments in the music industry, focusing on emerging trends and legal challenges related to artificial intelligence (AI) in music, as well as key partnerships and financial maneuvers by major music firms.
1. Apple Music Introduces AI Labels:
Apple Music announced plans to implement “Made With AI” labels for tracks that are substantially generated by AI platforms like Suno. This initiative aims to increase transparency regarding the origins of music but places the responsibility for tagging these tracks on record labels and distributors. This change is expected to roll out later this year, allowing listeners to identify AI-generated music more easily.
2. Round Hill’s Legal Action Against AI Platforms:
Round Hill Music has filed separate copyright infringement lawsuits against AI companies Suno and Anthropic, seeking up to $1 billion from each. The lawsuits, filed in the US District Court for the Northern District of California, claim that the companies willfully infringed on copyright laws, with potential damages reaching into the hundreds of millions. Round Hill has indicated that it has no intention of settling these cases, signaling a tough stance on copyright enforcement in the age of AI.
3. Universal Music Group and The Beatles Merchandise Deal:
Universal Music Group (UMG) has secured an exclusive, long-term global partnership with Apple Corps Ltd., which manages The Beatles’ brand. This agreement grants UMG the rights to merchandise, licensing, and e-commerce related to The Beatles, building on its existing rights to the band’s recorded music catalog. This deal marks a significant expansion of UMG’s involvement with one of music history’s most iconic bands, enhancing their merchandising strategies and global reach.
4. Spotify’s Share Buyback Program Expansion:
Spotify has decided to boost its share buyback program by an additional $1.5 billion, raising its total authorization to approximately $2.2 billion. The company’s Board of Directors approved this increase, enabling Spotify to repurchase more of its shares from the market. This financial strategy is seen as a method to enhance shareholder value, especially in a competitive streaming market where maintaining investor confidence is crucial.
5. Warner Music Group’s Stance on AI Licensing:
Robert Kyncl, CEO of Warner Music Group (WMG), has defended his company’s licensing agreement with Suno, an AI music platform, amidst ongoing litigation from Universal Music Group and Sony against the same company. Kyncl’s perspective has been somewhat isolated in the industry, as many other major labels have taken a more adversarial approach toward AI-generated music. Under WMG’s agreement with Suno, the platform committed to limiting user downloads and is set to introduce a new licensing model in collaboration with industry partners, which includes WMG taking an equity stake in the company.
In summary, the music industry is navigating a complex landscape influenced by AI technology, legal challenges, and strategic partnerships. Apple Music’s labeling initiative reflects a growing awareness of the need for transparency in music production, while Round Hill’s lawsuits underscore the ongoing tensions surrounding copyright in the digital age. UMG’s deal with The Beatles showcases the lucrative potential of merchandise and e-commerce, and Spotify’s financial maneuvers indicate a focus on shareholder value in a competitive environment. Kyncl’s defense of WMG’s approach to AI highlights the divergent strategies among major music companies as they adapt to technological advancements. The week’s developments suggest a pivotal moment for the industry as it grapples with innovation and the preservation of artistic rights.
