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Investing.com -- Music industry heavyweights are in advanced talks with artificial intelligence startups over licensing agreements that could reshape how artists are paid when their songs are used in AI-generated content. Universal Music Group NV (AS:UMG), Warner Music Group (NASDAQ:WMG), and Sony (NYSE:SONY) Music Group are each negotiating separately with Suno and Udio, two emerging AI platforms that use existing music catalogs to train generative models, according to The Wall Street Journal, citing people familiar with the matter.
The discussions mark a pivotal attempt to build stability around music’s intersection with artificial intelligence amid mounting regulatory uncertainty. With lawmakers scrutinizing AI’s use of copyrighted content, record labels and startups are under pressure from investors to craft commercial frameworks that ensure legal compliance while preserving relationships with creators.
Central to the talks is a demand from the music companies for attribution and fingerprinting systems akin to YouTube’s content ID technology. Such infrastructure would allow for the accurate tracking of source material in AI-created songs, helping to quantify usage and ensure compensation flows to rights holders.
In addition to financial remuneration, the labels are seeking broader control over how generative music tools are developed and used. This could involve input over product design and features, signaling a desire for music executives to play a more active role in shaping the emerging AI-driven music ecosystem.
While the negotiations are progressing, a key obstacle is establishing compensation models that would scale across entire catalogs and still appeal to musicians wary of AI dilution. Some artists have voiced concerns around how their work may be used without adequate oversight or approval.
To address resistance among performers, the proposed deals include opt-out provisions that would enable individual artists to exclude their catalogs from specific applications. Moreover, the settlements could resolve ongoing lawsuits accusing the startups of using music without permission and may involve the music companies acquiring equity stakes in the AI firms.
The outcomes of these talks are likely to set critical precedents for intellectual property use in generative AI across the entertainment sector. As the race to define ethical and commercial norms in this space accelerates, consensus between legacy rights holders and disruptive tech firms could chart a pathway for broader adoption.