The landscape of the music industry is evolving rapidly, as AI becomes a critical component of strategy and innovation. For many music companies, the integration of artificial intelligence represents both a challenge and an opportunity. Navigating the complexities of legislation and litigation is essential to harness the potential of generative AI technologies. While these advancements promise to transform the industry, they also pose risks, particularly concerning the dilution of streaming royalties. With proper regulation, the same technologies that threaten existing revenue streams could enable new licensing opportunities for technology startups. However, achieving this balance is fraught with difficulty, as demonstrated by the industry’s fierce resistance to changes in copyright laws in the UK.
Facing this dynamic environment, songwriters and their representative organizations encounter a more intricate landscape. The ownership of musical works is frequently shared, complicating the relationships between writers, publishers, and various collecting societies. These rights can be divided among entities managing public performance rights, mechanical rights, and other categories. In Continental Europe, where copyright is considered more of a fundamental right than a mere economic concern, the implications of AI are even more profound. Renowned musician Björn Ulvaeus, the frontman of ABBA and President of CISAC, emphasizes the need to address the fundamental questions surrounding authorship and creativity in his remarks on the future of copyright in the face of AI advancements, underscoring the importance of preserving the integrity of copyright and authors’ rights.
Recently, CISAC convened its annual general assembly in Sofia, Bulgaria, on May 28, where discussions spanned several days. This organization not only advocates for the rights of creators, defined in the music industry as songwriters, but also maintains the crucial infrastructure that enables collective rights management organizations to efficiently transfer funds to one another. Much of this activity occurs behind the scenes, making it less visible to the public. A significant topic of conversation was the modernization of CIS-Net, the system responsible for managing data exchanges between various collective management organizations, which is vital for ensuring that creators receive their rightful earnings.
During a virtual speech, Ulvaeus candidly expressed his priorities, stating, “You may think you see here a famous musician and songwriter. But I have a confession to make: what really fires me up these days is… data.” His passion for data management stems from its direct impact on the financial well-being of creators. In the evolving music landscape, data is becoming increasingly important, as it directly correlates with the monetary compensation that artists receive for their work, highlighting the need for robust data infrastructure in the age of AI.
Despite the excitement surrounding AI, concerns are mounting within CISAC regarding the challenges posed by this technology. The organization identifies a series of interconnected issues related to the legal licensing of AI outputs, a problem that many rightsholders face as major labels negotiate with emerging platforms like Suno and Udio. The complexity of these negotiations is compounded by the fact that while labels can license rights to their extensive catalogs, licensing songs entails a more intricate process due to the varying rights held by different societies across multiple jurisdictions. Furthermore, the European tradition emphasizes the inherent rights of creators, potentially allowing them to argue that the use of their songs in AI-generated works could infringe upon their moral rights. This situation could lead to conflicts between publishers and collecting societies over who holds the authority to license mechanical rights for the training of generative AI algorithms.
Prior to establishing comprehensive regulations, nations must reach consensus on fundamental copyright principles related to AI. Much of the dialogue in Sofia concentrated on strategies to achieve this goal. During his speech, Ulvaeus outlined three critical priorities that form the foundation of their position: the implementation of transparency rules for AI training, the right for creators to license their own works, and the guarantee of fair remuneration for artists. Each of these points is vital for ensuring that the interests of creators are protected in an increasingly complex digital landscape.
The first priority, transparency in AI training, is especially pressing. With evidence suggesting that numerous generative AI companies have trained their algorithms on vast quantities of copyrighted works, a critical question arises: how can we determine who should be compensated when AI systems generate new creative outputs? An effective AI economy must prioritize transparency to ensure that all contributors receive just compensation. However, the other two priorities may generate contention within the music industry. Different countries exhibit varying practices regarding the licensing of mechanical rights, and the right to remuneration, a concept more prevalent in Europe, has the potential to navigate existing business contracts while addressing the needs of creators.
CISAC Director General Gadi Oron also highlighted the practical aspects of the organization’s advocacy efforts. The most pressing AI regulations currently reside within the EU, a framework that many view as imperfect yet generally effective. However, this regulatory environment is under pressure as technology firms push back against certain requirements. This ongoing struggle illustrates the significant challenges ahead in establishing a balanced regulatory framework. While labels and other rightsholders share common ground on numerous issues, substantial disagreements exist on others. This landscape is likely to spark litigation, further legislative efforts, and considerable industry anxiety.
The prevailing concern is that the publishing sector may attempt to negotiate deals after labels secure their agreements, potentially undermining their bargaining power. Despite this, CISAC members possess considerable influence to advocate for their interests, even though many report to both publishers and songwriters, who may not always align in their perspectives. The ongoing negotiations surrounding the legalization of AI in the music sector mark only the beginning of a broader conversation about the future of copyright and creative rights.
