Two of the three major music companies, Universal Music Group and Warner Music Group, are reportedly approaching a licensing deal with AI Music Companies.
That is according to Financial Times, On Thursday (October 2), citing people familiar with the issue, reporting that companies can “convert with artificial intelligence companies within weeks” to “set precedents on how AI companies pay for music.”
According to ft's Reporting, negotiations are at the heart of licensed music for AI to create generated tracks, allowing music to train large-scale language models.
The discussion reportedly includes AI startups evelenlabs, Stability AI, Sun, Udio and Clay vision.
Label is also negotiating with high-tech companies Google and Spotifyaccording to the report.
News of the pressing transaction reported will arrive against the background of aggressive litigation between the major and two companies: AI Music Generators Udio and Sun.
Universal, Warner and the third leading music company Sony sued these two startups last June, training the system using label recordings without permission.
According to ft's The report says consultations with the startup are expected to lead to a “licensing agreement containing settlements for the use of past music.”
One of the other AI companies cited in FT is AI, headquartered in London and New York Audio Startup ElevenLabsIn August, they announced Eleven Music, a rival to Suno and Woodio.
However, unlike Suno and Udio, 11 music Already inked license agreements with Merlin and the potentially well-known right sholder Precedent set transaction With Cobalt, the publisher.
The Kobalt-ElevenLabs transaction included provisions ensuring equality between publication and recorded music revenue. Approximately reaches each side 50/50 Splitting royalties generated from AI platforms.
Perhaps most importantly, as reported by MBW at that time, cobalt It's secured Most Favourite Country (MFN) Clauses Terms of the contract with ElevenLabs. This means that the right shoulder of the recorded music may negotiate Better terms Rather than cobalt, publishers will automatically upgrade to match them.
Apart from that, it is also worth pointing out what Klay's vision said. ft's The article entered into a strategic partnership with the Universal Music Group in October 2024, working on “a pioneering commercial ethical fundamental model of AI-created music that works by working with the music industry and its creators.”
According to ft's The report drives a payment model similar to the streaming service, with each use triggering micropayments.
They are AI companies, YouTube Content ID A system that tracks when their music is displayed in AI output, ft I said.
but, ft Executives said they warned that negotiations faced complexities that do not exist in streaming transactions.
The executive of the unnamed senior label told the news outlet: “It's different to bringing the whole history of music and supplying models that produce things that are not recognizable. The question is, are the artists on board?”
The executive added: “It depends on the contract. Most people say, “It's impossible to go back to the artist every time and ask, 'Is it okay to use this music?” At some point there is a big precedent transaction. ”
Bloomberg It was first reported in June about licensing consultations between all three major labels with Suno and Udio. At the time, Newswire said the music giant was seeking licensing fees from the platform and “small” stakes in both companies.
UMG and WMG are reportedly approaching AI licensing transactions, ft A statement from Sony Music was quoted FT: “We're talking with companies that have ethically trained models and benefit artists and songwriters.”
The urgency is attributed to a flood of music generated by AI on streaming platforms. last month, Deather Almost a third, or 28%out of all the tracks uploaded to the platform, completely AI has been generated.
Spotify recently said it had deleted it 75 million “Spam” AI is tracked over the past year.
Music business all over the world
