The Wall Street Journal quotes informed sources reporting that major music companies, including Universal Music Group, are negotiating AI music licensing agreements with two start-ups. The discussions could set a precedent for how AI-generated remixes are compensated and how artists are rewarded.
The report cites informed sources revealing that Universal, Warner Music, and Sony Music Group hope to receive compensation from the start-ups Suno and Udio when the music of their signed artists is used to train generative AI models and produce new music. Notable artists under these companies include Taylor Swift and Ed Sheeran.
The informed sources continued to say that to determine how much compensation artists and record labels should receive, the companies hope the aforementioned start-ups can develop a fingerprint recognition and attribution technology (similar to YouTube's Content ID) to track when and how songs are used. Furthermore, these music companies wish to actively participate in music-related products released by the AI companies, having a say in what products are developed and how they operate.
The report states that each record label is negotiating separately with the start-ups, and the stages of progress vary. The negotiations also indicate that record companies, like film studios and book publishers, are trying to prevent generative AI from posing a threat to their businesses while creating new revenue streams.
The Recording Industry Association of America (a trade group for the music industry) filed a lawsuit against Suno and Udio last June, accusing both companies of infringing on the copyrights of artists and record labels.
