State Champ Radio AI
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– Megan Thee Stallion agreed in October to settle a long-running legal battle against her former record label record label, 1501 Certified Entertainment. The deal came after more than three years of bitter litigation stemming from her accusation that 1501 duped the young artist into signing an unfair record deal in 2018 that was well below industry standards. That cleared the way for her to sign a distribution deal with Warner Music in December.
– Kesha and Dr. Luke reached a settlement in June to end a decade-long lawsuit accusing the pop star of defaming him in 2014 when she accused him of raping her in 2005. The agreement came on the eve of trial — and just a week after a New York court issued a key ruling that would have made it harder for Dr. Luke to win the case.
– DJ Envy, the host of the popular Breakfast Club hip-hop radio show, was sued over the summer by dozens of investors who claimed he was complicit in an alleged multi-million-dollar real estate investment scam in New Jersey perpetrated by celebrity real estate guru Cesar Pina. Envy denied the allegations and said he too was a victim of the fraud. But when federal prosecutors indicted Pina in October for running a “Ponzi-like investment fraud scheme,” they specifically noted that Pina had “partnered with a celebrity disc jockey and radio personality” to boost his reputation.
– New state laws restricting drag performances were struck down as unconstitutional, first in Tennessee, then in Florida, and finally in Texas, each time on the grounds that they likely violate freedom of speech. Such statutes are nominally aimed at protecting children from obscenity, but critics say existing laws already do that and that the new legislation is instead a thinly veiled attack on the LGBTQ community. The new laws have been closely watched by the music industry over concerns that aspects of concerts could run afoul of broad new restrictions.
– Tory Lanez was sentenced to 10 years in prison in August for shooting Megan Thee Stallion in the foot during an argument, capping off three years of legal drama over the violent 2020 incident. The sentence came after Lanez was convicted on three felony counts at trial, a verdict that the singer is currently appealing.
– The two key remaining members of Journey — lead guitarist Neal Schon and keyboardist Jonathan Cain — battled in court over back-and-forth accusations related to band finances and a corporate American Express card. The lawsuit was just the tip of the iceberg when it comes to Journey’s internal dysfunction and legal issues, as detailed by Billboard’s Steve Knopper.
– A private feud between longtime members of the legendary rock band Mötley Crüe burst into public view in April when co-founder Mick Mars filed a lawsuit accusing his former “brothers” of tossing him to the curb after he said he could no longer tour due to a “tragic” disability called ankylosing spondylitis. The rest of Crüe, on the other hand, says they offered Mars “generous compensation” as a courtesy, but that he instead chose to file an “ugly public lawsuit.”
Hidden behind a white sheet and sunglasses, an anonymous music-maker called Ghostwriter logged on to TikTok in April to post his first video. In it, he announced his debut single, “Heart on My Sleeve” — and signaled a seismic shift in the music business. Using an artificial intelligence voice filter that disguised Ghostwriter’s own timbre behind that of Drake and The Weeknd, “Heart on My Sleeve” was the first song to show just how far AI music had come already and what novel challenges and opportunities it would present to artists.
The song also proved that artists would struggle to control how their voice and likeness are used in the age of AI — even superstars like Drake and The Weeknd who have the resources to fight back. Universal Music Group (UMG) issued a strongly worded statement soon after the song’s posting, condemning “infringing content created with generative AI,” and the song was quickly taken down from most platforms. But fans continued to post it to TikTok and YouTube every time it was removed. As Ghostwriter later put it in his Billboard cover story: “The genie can’t be put back in the bottle.”
“Heart on My Sleeve” forced the industry to reckon with the limitations of existing “right of publicity” laws that protect artists from having their voices and likenesses commercially exploited without their authorization. The strength of this right varies from state to state, and at the time the song was released, there wasn’t a precedent for issuing takedown notices for these types of violations, like there is for copyright infringement claims.
Likely as a result of the song and other AI concerns, UMG general counsel/executive vp of business and legal affairs Jeffrey Harleston went to Capitol Hill to talk to the Senate Judiciary Committee in July, asking for a “federal right of publicity” to be created to help protect artists. Streaming services also voluntarily entered talks with the major labels to form a system so that labels can request takedowns for right of publicity concerns.
Still, some artists consider Ghostwriter to be a revolutionary. Artist-producer Grimes took to X (formerly Twitter) after the release of “Heart on My Sleeve” to write, “I think it’s cool to be fused w a machine, and I like the idea of open sourcing all art.” Shortly after, she launched GrimesAI, a voice model trained on her recordings that lets fans shape-shift their voice into hers at the click of a button. She also collaborated with TuneCore to allow fans to distribute their resulting songs to streaming services under the tag “GrimesAI” to distinguish it from her own catalog.
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YouTube recently built on this same idea with the experimental program Dream Track. It lets fans use voice models of Charlie Puth, John Legend, Sia, T-Pain, Demi Lovato, Troye Sivan, Charli XCX, Alec Benjamin and Papoose with the approval of partners UMG and Warner Music Group (WMG).
Songwriters and publishers have also started using AI voice technology. This summer, Billboard reported that AI voice models were used to help writers pitch song ideas to artists. The AI-altered pitch records had been used as an internal reference for the writers to gauge if the track sounded appropriate for a particular singer while composing, and sometimes the records with the AI voice applied were also sent to the artist’s team in hopes that they would increase their chance of landing the song.
In a recent interview with Billboard, pop artist Lauv said he has seen that usage firsthand with one of his songwriter friends who was pitching a track to Nicki Minaj using AI. Lauv himself is also leaning into the new technology: In November, he partnered with AI voice startup Hooky — one of many startups in the space — to translate his new single, “Love U Like That,” into Korean. After getting Korean American songwriter Kevin Woo to translate the lyrics and sing a Korean version, Hooky applied Lauv’s AI voice model to map Lauv’s signature sound over Woo’s.
Ghostwriter’s manager previously said he also believes that artist estates and catalog owners could use AI voice models to market their music. WMG is now experimenting with the catalog of late French singer Édith Piaf. The company is creating AI models to resurrect her voice and likeness for a controversial new biopic called EDITH to “further enhance the authenticity and emotional impact of the story,” according to a press release.
“Heart on My Sleeve” represents just one of many burgeoning areas of AI that can transform the music business in the future. Concurrently, as startups like Kits.AI, mayk.it, Hooky, Voice-Swap, Supertone and Lingyin Engine hope to capture the AI voice model market, AI-generated beats and loops promise to upend production music libraries and the overall creation process. AI “functional music,” soundscapes designed to fit user needs for sleep, focus or relaxation, also promise an evolution in wellness and ambient music. And as AI stem separation unlocks possibilities for remixing, synch licensing and restoring old audio files (the new Beatles song, “Now and Then,” used the technology to restore John Lennon vocal recordings), there are surely even more use cases for AI that are yet to be discovered.
While legal and logistical questions remain with the technology, Ghostwriter’s team is pressing on. He has teased a second single (“Whiplash” featuring the AI voices of Travis Scott and 21 Savage) while expressing his desire to collaborate with other artists. As such, Ghostwriter’s manager believes it is of the utmost importance for the music business to band together to “define an equitable arrangement for all stakeholders” when using AI. As he previously told Billboard, “We had an opportunity [with “Heart on My Sleeve”] to show people the value in AI and music … I like to say that everything starts somewhere.”
This story originally appeared in the Dec. 9, 2023, issue of Billboard.
Generative AI music creation platform, label and publisher Boomy reached a distribution partnership with ADA Worldwide, Warner Music Group’s independent distribution and label services arm. Under the deal, Boomy’s A&R team will bring top artists and exclusively curated music from the Boomy roster to ADA. Select Boomy artists will be distributed and marketed across platforms including Spotify, Apple Music and YouTube Music. Boomy artists who will benefit from the partnership include rapper-producer Jelie, German harpist Katirha, Boston-based producer Lightfoot, rapper Paperboy Prince and techno/lo-fi music project Plague of Grackles. Boomy’s AI systems allow human creators to make original music even if they lack professional tools or a formal music-making education.
AI and metaverse technology and content company Futureverse signed with CAA for representation in all areas. The companies will collaborate to open up new opportunities for talent and intellectual property across Web3, the metaverse, AI, virtual games and experiences and more. The announcement follows the unveiling of Futureverse’s JEN 1, a “high-fidelity model” for text-to-music generation and research paper that proposes a strategy to pioneer a new licensing framework compensating rights holders, producers and artists. “Futureverse’s strategic collaboration with CAA has forged a strong alignment in fostering the development of mutually beneficial business models that empower creators with groundbreaking tools and lucrative revenue opportunities. As pioneers in AI, web3 and metaverse infrastructure, driven by a deep appreciation for art and humanity, we see an incredibly bright future for the world of entertainment,” said Futureverse co-founder Shara Senderoff in a statement. Futureverse’s other co-founder is Aaron McDonald.
Through an existing joint venture, CTS Eventim and Sony Music Latin Iberia acquired Punto Ticket in Chile and Teleticket in Peru, expanding the JV’s South American ticketing business, which launched in Brazil in 2016. The acquisitions will provide ticketing systems and related services to concert promoters and venues across both countries. Corporate leadership for the acquired companies will remain intact.
Spotify partnered with mobile provider Orange Middle East & Africa, which will now offer complimentary data bonuses for its customers to access Spotify’s service. “We are aware that data costs continue to be a hindrance for people who would like to stream music, that’s why we are actively working at Spotify SSA on partnerships like this one,” said Jocelyne Muhutu-Remy, MD for Spotify in Sub-Saharan Africa, in a statement. Brelotte Ba, deputy CEO of Orange Middle East and Africa, added that the deal will “contribute to the acceleration of digital inclusion on the continent.” Orange operates in a total of 18 countries across Africa and the Middle East.
HARMAN, a Samsung Electronics subsidiary that focuses on connected technologies for automotive, consumer and enterprise markets, acquired music management, discovery and streaming platform Roon. Described in a press release as “a music player for music enthusiasts,” Roon is available on all popular operating systems and also manufactures a line of hardware server appliances called Nucleus. Roon will operate as a standalone HARMAN business with its existing team remaining in place. HARMAN plans to grow Roon’s open device ecosystem that collaborates with more than 160 other audio brands, delivering audio to more than 1,000 high-performance devices.
Universal Music Group (UMG) signed a deal with Ethiopian streaming platform Sewasew Multimedia, which will now license and market UMG’s music catalog in Ethiopia. “UMG has a long and successful presence in Africa, and given Ethiopia’s rich and vibrant music culture, we are excited to work with Sewasew Multimedia to help grow the Ethiopian music industry to its full potential,” said Ulrik Cahn, UMG executive vp of Africa, Middle East and Asia, in a statement.
Independent digital distributor IDOL signed a global distribution and label services deal with Young Art Records, the L.A.-based label belonging to producer and DJ TOKiMONSTA. Under the partnership, IDOL will handle global distribution and marketing for Young Art Records’ catalog and frontline releases. In addition to TOKiMONSTA, Young Art artists include rapper Cakes Da Killa, Canadian R&B musician Rochelle Jordan and instrumentalist-songwriter duo Daktyl & Benni Ola.
Warner Music Group (WMG) struck a partnership with Ghana-based Small World Records, the label and publisher founded by music entrepreneur and streetwear connoisseur SmallGod. Under the new agreement, Small World will collaborate with teams from WMG, ADA and Warner Chappell Music to elevate Small World’s artist and songwriter rosters worldwide and discover, nurture and elevate a new generation of African talent. SmallGod will continue leading Small World’s operations.
SiriusXM unveiled a new collaboration with Europe’s Radio Monaco to launch the SiriusXM Radio Monaco channel, which will bring artists and DJs from Monte Carlo to SiriusXM listeners in North America. According to a press release, Radio Monaco (originally launched in 2006) is the only music stream originating from Monaco. The channel will broadcast live from Jimmy’z Monte-Carlo and air DJ sets from the parties around the Monaco Grand Prix while featuring exclusive interviews and content with stars from the country’s music scene. Radio Monaco will be available to SiriusXM subscribers across North America.
Spinnin’ Records signed a new joint venture with independent dance label and publisher Kanary Records, run by brothers Alex and Christopher Van den Hoef — also known as production duo DVBBS. Artists on Kanary’s roster include Arkade, Bad Nonn and Dayfive. “We are delighted to join forces with Alex and Christopher, reigniting our relationship from over a decade ago,” said Jorn Heringa, head of A&R at Spinnin’ Records, in a statement. “Both brothers bring deep expertise and knowledge to the table and will work harder than anyone else to develop and drive KANARY to new heights with us. Welcome back to Spinnin’!”
Mozaic.io, a global payments platform that allows co-creators to automatically send and receive split payments, closed a $20 million Series A funding round from Boston-based growth equity firm Volition Capital. Mozaic.io initially focused on payouts for music distributors, artists and collaborators before expanding to serve the entire peer-to-peer creator economy, with a goal of expanding further into the gig and freelance economy. The investment brings the total raised for Mozaic.io to $27.1 million, with existing investment from Rise of the Rest, Maverick Nashville and music industry executive Joe Galante. The funds will be used for new product development and expanding Mozaic’s sales and product teams.
Audoo — a music technology company that allows artists, songwriters, PROs and CMOs to see in real-time where their music is played via the use of proprietary audio meters, enabling them to better collect on public performance royalties — partnered with Abu Dhabi-based music rights organization ESMAA. Through the collaboration, ESMAA will incorporate Audoo’s “Audio Meter” and insights platform into its operational framework, allowing more accurate and transparent data collection and payment distribution for artists and rights holders. “ESMAA is at the forefront of building a modern rights company and through implementing the best technology from Audoo, we bridge the path of identifiable potential income with a system that optimises the use of music recognition in public performance spaces,” said Spek, founder/CEO of ESMAA, in a statement.
Canadian booking agency Paquin Artists Agency (PAA), a division of Paquin Entertainment Group, formed a strategic partnership with Louis Carrière, founder/president of Quebec-based agency Preste. The partnership will deepen PAA’s footprint in Quebec as it opens a new office in Montreal. PAA will also provide key resources to Carrière and his team to export Quebecian talent.
Believe-owned metal label Nuclear Blast announced an exclusive e-commerce partnership with Impericon, a provider of metalcore merchandise and music. Under the deal, Impericon will oversee all of Nuclear Blast’s European e-commerce activities starting in the first quarter of 2024.
Listeners remain wary of artificial intelligence, according to Engaging with Music 2023, a forthcoming report from the International Federation of the Phonographic Industry (IFPI) that seems aimed in particular at government regulators.
The IFPI surveyed 43,000 people across 26 countries, coming to the conclusion that 76% of respondents “feel that an artist’s music or vocals should not be used or ingested by AI without permission,” and 74% believe “AI should not be used to clone or impersonate artists without authorisation.”
The results are not surprising. Most listeners probably weren’t thinking much, if at all, about AI and its potential impacts on music before 2023. (Some still aren’t thinking about it: 89% of those surveyed said they were “aware of AI,” leaving 11% who have somehow managed to avoid a massive amount of press coverage this year.) New technologies are often treated with caution outside the tech industry.
It’s also easy for survey respondents to support statements about getting authorization for something before doing it — that generally seems like the right thing to do. But historically, artists haven’t always been interested in preemptively obtaining permission.
Take the act of sampling another song to create a new composition. Many listeners would presumably agree that artists should go through the process of clearing a sample before using it. In reality, however, many artists sample first and clear later, sometimes only if they are forced to.
In a statement, Frances Moore, IFPI’s CEO, said that the organization’s survey serves as a “timely reminder for policymakers as they consider how to implement standards for responsible and safe AI.”
U.S. policymakers have been moving slowly to develop potential guidelines around AI. In October, a bipartisan group of senators released a draft of the NO FAKES Act, which aims to prevent the creation of “digital replicas” of an artist’s image, voice, or visual likeness without permission.
“Generative AI has opened doors to exciting new artistic possibilities, but it also presents unique challenges that make it easier than ever to use someone’s voice, image, or likeness without their consent,” Senator Chris Coons said in a statement. “Creators around the nation are calling on Congress to lay out clear policies regulating the use and impact of generative AI.”
CreateSafe, a music technology studio known best for its work on Grimes’ AI voice model, has raised $4.6 million in seed round funding for its new AI music creation toolkit, TRINITI.
Offering a “full creative stack” for musicians from the inception of songwriting to its release, TRINITI’s round was led by Polychain Capital, a cryptocurrency and blockchain tech investment firm, as well as Crush Ventures, Anthony Saleh (manager of Kendrick Lamar, Nas and Gunna), Paris Hilton’s 11:11 Media, MoonPay, Chaac Ventures, Unified Music Group and Dan Weisman (vp at Bernstein Private Wealth Management).
Grimes has also joined CreateSafe’s advisory board to continue to collaborate with the brand.
Starting today, TRINITI will offer five tools:
Voice transformation and cloning: make your own voice model and offer it up for licensing, transform your voice into someone else’s
Sample Generation: create audio samples from text-based prompts
Chat: ask questions to a chat bot trained on music industry knowledge
Distribution: share music on streaming services
Management: manage rights to songs and records
“Music is the core of humankind,” said CreateSafe founder/CEO Daouda Leonard. “However, the story of music as a profession has been corrupted by middle men, who have misguided the industry while taking money from artists. For a few years, we’ve been saying that we are building the operating system for the new music business. With AI, it’s possible to fulfill that promise. We want to pioneer the age of exponential creativity and give power back to creators. With TRINITI, you can turn inspiration into a song and set of visuals. That music gets distributed to DSPs, a marketing plan can be generated, and all of the business on the backend can be easily managed. This whole process takes seconds.”
“As a team we’d always discussed finding novel ways of wealth redistribution via art,” added Grimes. “We immediately hopped onto blockchain tech because of the new possibilities for distribution, cutting out middle men, etc. Throwing generative music into the picture and removing all our label strings so we can reward derivative music — combined with everything we’d been working towards the last few years with blockchain — allowed a unique approach to distribution.
“I’m really proud of the team that they were able to execute this so fast and with such vision,” Grimes continued. “There’s a lot to talk about but ultimately, art generates so much money as an industry and artists see so little of it. A lot of people talk about abundance as one of the main end goals of tech, acceleration, AI, etc… for us the first step is actually figuring out how to remove friction from the process of getting resources into artists’ hands.”
Offering a preview of arguments the company might make in its upcoming legal battle with Universal Music Group (UMG), artificial intelligence (AI) company Anthropic PBC told the U.S. Copyright Office this week that the massive scraping of copyrighted materials to train AI models is a “quintessentially lawful.”
Music companies, songwriters and artists have argued that such training represents an infringement of their works at a vast scale, but Anthropic told the federal agency Monday (Oct. 30) that it was clearly allowed under copyright’s fair use doctrine.
“The copying is merely an intermediate step, extracting unprotectable elements about the entire corpus of works, in order to create new outputs,” the company wrote. “This sort of transformative use has been recognized as lawful in the past and should continue to be considered lawful in this case.”
The filing came as part of an agency study aimed at answering thorny questions about how existing intellectual property laws should be applied to the disruptive new tech. Other AI giants, including OpenAI, Meta, Microsoft, Google and Stability AI all lodged similar filings, explaining their views.
But Anthropic’s comments will be of particular interest in the music industry because that company was sued last month by UMG over the very issues in question in the Copyright Office filing. The case, the first filed over music, claims that Anthropic unlawfully copied “vast amounts” of copyrighted songs when it trained its Claude AI tool to spit out new lyrics.
In the filing at the Copyright Office, Anthropic argued that such training was a fair use because it copied material only for the purpose of “performing a statistical analysis of the data” and was not “re-using the copyrighted expression to communicate it to users.”
“To the extent copyrighted works are used in training data, it is for analysis (of statistical relationships between words and concepts) that is unrelated to any expressive purpose of the work,” the company argued.
UMG is sure to argue otherwise, but Anthropic said legal precedent was clearly on its side. Notably, the company cited a 2015 ruling by a federal appeals court that Google was allowed to scan and upload millions of copyrighted books to create its searchable Google Books database. That ruling and others established the principle that “large-scale copying” was a fair use when done to “create tools for searching across those works and to perform statistical analysis.”
“The training process for Claude fits neatly within these same paradigms and is fair use,” Anthropic’s lawyers wrote. “Claude is intended to help users produce new, distinct works and thus serves a different purpose from the pre-existing work.”
Anthropic acknowledged that the training of AI models could lead to “short-term economic disruption.” But the company said such problems were “unlikely to be a copyright issue.”
“It is still a matter that policymakers should take seriously (outside of the context of copyright) and balance appropriately against the long-term benefits of LLMs on the well-being of workers and the economy as a whole by providing an entirely new category of tools to enhance human creativity and productivity,” the company wrote.
A federal judge in San Francisco ruled Monday (Oct. 30) that artificial intelligence (AI) firm Stability AI could not dismiss a lawsuit claiming it had “trained” its platform on copyrighted images, though he also sided with AI companies on key questions.
In an early-stage order in a closely watched case, Judge William Orrick found many defects in the lawsuit’s allegations, and he dismissed some of the case’s claims. But he allowed the case to move forward on its core allegation: That Stability AI built its tools by exploiting vast numbers of copyrighted works.
“Plaintiffs have adequately alleged direct infringement based on the allegations that Stability downloaded or otherwise acquired copies of billions of copyrighted images without permission to create Stable Diffusion, and used those images to train Stable Diffusion,” the judge wrote.
The ruling came in one of many cases filed against AI companies over how they use copyrighted content to train their models. Authors, comedians and visual artists have all filed lawsuits against companies including Microsoft, Meta and OpenAI, alleging that such unauthorized use by the fast-growing industry amounts to a massive violation of copyright law.
Last week, Universal Music Group and others filed the first such case involving music, arguing that Anthropic PBC was infringing copyrights en masse by using “vast amounts” of music to teach its software how to spit out new lyrics.
Rulings in the earlier AI copyright cases could provide important guidance on how such legal questions will be handled by courts, potentially impacting how UMG’s lawsuit and others like it play out in the future.
Monday’s decision came in a class action filed by artists Sarah Andersen, Kelly McKernan and Karla Ortiz against Stability AI Ltd. over its Stable Diffusion — an AI-powered image generator. The lawsuit also targeted Midjourney Inc. and DeviantArt Inc., two companies that use Stable Diffusion as the basis for their own image generators.
In his ruling, Judge Orrick dismissed many of the lawsuit’s claims. He booted McKernan and Ortiz from the case entirely and ordered the plaintiffs to re-file an amended version of their case with much more detail about the specific allegations against Midjourney and DeviantArt.
The judge also cast doubt on the allegation that every “output” image produced by Stable Diffusion would itself be a copyright-infringing “derivative” of the images that were used to train the model — a ruling that could dramatically limit the scope of the lawsuit. The judge suggested that such images might only be infringing if they themselves looked “substantially similar” to a particular training image.
But Judge Orrick included no such critiques for the central accusation that Stability AI infringed Andersen’s copyrights by using them for training without permission — the basic allegation at the center of all of the AI copyright lawsuits, including the one filed by UMG. Andersen will still need to prove that such an accusation is true in future litigation, but the judge said she should be given the chance to do so.
“Even Stability recognizes that determination of the truth of these allegations — whether copying in violation of the Copyright Act occurred in the context of training Stable Diffusion or occurs when Stable Diffusion is run — cannot be resolved at this juncture,” Orrick wrote in his decision.
Attorneys for Stability AI, Midjourney and DeviantArt did not return requests for comment. Attorneys for the artists praised the judge for allowing their “core claim” to move forward and onto “a path to trial.”
“As is common in a complex case, Judge Orrick granted the plaintiffs permission to amend most of their other claims,” said plaintiffs’ attorneys Joseph Saveri and Matthew Butterick after the ruling. “We’re confident that we can address the court’s concerns.”
This is The Legal Beat, a weekly newsletter about music law from Billboard Pro, offering you a one-stop cheat sheet of big new cases, important rulings and all the fun stuff in between.
This week: Universal Music Group (UMG) and other music companies file a hotly-anticipated copyright lawsuit over how artificial intelligence (AI) models are trained; DJ Envy’s business partner Cesar Pina is hit with criminal charges claiming he ran a “Ponzi-like” fraud scheme; Megan Thee Stallion reaches a settlement with her former label to end a contentious legal battle; Fyre Fest fraudster Billy McFarland is hit with a civil lawsuit by a jilted investor in his new project; and more.
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THE BIG STORY: AI Music Heads To Court
When UMG and several other music companies filed a lawsuit last week, accusing an artificial intelligence company called Anthropic PBC of violating its copyrights en masse to “train” its AI models, my initial reaction was: “What took so long?”
The creators of other forms of content had already been in court for months. A group of photographers and Getty Images sued Stability AI over its training practices in January, and a slew of book authors, including Game of Thrones writer George R.R. Martin and legal novelist John Grisham, sued ChatGPT-maker OpenAI over the same thing in June and again in September. And music industry voices, like the RIAA and UMG itself, had repeatedly signaled that they viewed such training as illegal.
For months, we asked around, scanned dockets and waited for the music equivalent. Was the delay a deliberate litigation strategy, allowing the fast-changing market and the existing lawsuits to play out more before diving in? Was the music business focusing on legislative, regulatory or business solutions instead of the judicial warpath they chose during the file-sharing debacle of the early 2000s?
Maybe they were just waiting for the right defendant. In a complaint filed in Nashville federal court on Oct. 18, UMG claimed that Anthropic — a company that got a $4 billion investment from Amazon last month — “unlawfully copies and disseminates vast amounts of copyrighted works” in the process of teaching its models to spit out new lyrics. The lengthy complaint, co-signed by Concord Music Group, ABKCO and other music publishers, echoed arguments made by many rightsholders in the wake of the AI boom: “Copyrighted material is not free for the taking simply because it can be found on the internet.”
Like the previous cases filed by photographers and authors, the new lawsuit poses something of an existential question for AI companies. AI models are only as good as the “inputs” they ingest; if federal courts make all copyrighted material off-limits for such purposes, it would not only make current models illegal but would undoubtedly hamstring further development.
The battle ahead will center on fair use — the hugely important legal doctrine that allows for the free use of copyrighted material in certain situations. Fair use might make you think of parody or criticism, but more recently, it’s empowered new technologies: In 1984, the U.S. Supreme Court ruled that the VCR was protected by fair use; in 2007, a federal appeals court ruled that Google Image search was fair use.
Are AI models, which imbibe millions of copyrighted works to create something new, the next landmark fair use? Or are they just a new form of copyright piracy on a vast new scale? We’re about to find out.
More key details about the AI case:
– The timing of the lawsuit would suggest that UMG is aiming for a carrot-and-stick approach when it comes to AI. On the same day the new case was filed, UMG announced that it was partnering with a company called BandLab Technologies to forge an “an ethical approach to AI.” Hours later, news also broke that UMG and other labels were actively negotiating with YouTube on a new AI tool that would allow creators to make videos using the voices of popular (consenting) recording artists.
-The huge issue in the case is whether the use of training inputs amounts to infringement, but UMG’s lawyers also allege that Anthropic violates its copyrights with the outputs that its models spit out — that it sometimes simply presents verbatim lyrics to songs. That adds a different dimension to the case that’s not present in earlier AI cases filed by authors and photographers and could perhaps make it a bit easier for UMG to win.
-While it’s the first such case about music, it should be noted that the Anthropic lawsuit deals only with song lyrics — meaning not with sound recordings, written musical notation, or voice likeness rights. While a ruling in any of the AI training cases would likely set precedent across different areas of copyright, those specific issues will have to wait for a future lawsuit, or perhaps an act of Congress.
Go read the full story on UMG’s lawsuit, with access to the actual complaint filed in court.
Other top stories this week…
MEGAN THEE SETTLEMENT – Megan Thee Stallion reached an agreement with her record label 1501 Certified Entertainment to end more than three years of ugly litigation over a record deal that Megan calls “unconscionable.” After battling for more than a year over whether she owed another album under the contract, the two sides now say they will “amicably part ways.”
DJ ENVY SCANDAL DEEPENS – Cesar Pina, a celebrity house-flipper with close ties to New York City radio host DJ Envy, was arrested on federal charges that he perpetrated “a multimillion-dollar Ponzi-like investment fraud scheme.” Though Envy was not charged, federal prosecutors specifically noted that Pina had “partnered with a celebrity disc jockey and radio personality” — listed in the charges as “Individual-1” — to boost his reputation as a real estate guru. The charges came after months of criticism against Envy, who is named in a slew of civil lawsuits filed by alleged victims who say he helped promote the fraud.
FOOL ME ONCE… – Billy McFarland, the creator of the infamous Fyre Festival who served nearly four years in prison for fraud and lying to the FBI, is facing a new civil lawsuit claiming he ripped off an investor who gave him $740,000 for his new PYRT venture. The case was filed by Jonathan Taylor, a fellow felon who met McFarland in prison after pleading guilty to a single count of child sex trafficking.
AI-GENERATED CLOSING ARGS? – Months after ex-Fugees rapper Prakazrel “Pras” Michel was convicted on foreign lobbying charges, he demanded a new trial by making extraordinary accusations against his ex-lawyer David Kenner. Michel claims Kenner, a well-known L.A. criminal defense attorney, used an unproven artificial intelligence (AI) tool called EyeLevel.AI to craft closing arguments — and that he did so because he owned a stake in the tech platform. Kenner declined to comment, but EyeLevel has denied that Kenner has any equity in the company.
ROLLING STONES GET SATISFACTION – A federal judge dismissed a lawsuit accusing The Rolling Stones members Mick Jagger and Keith Richards of copying their 2020 single “Living in a Ghost Town” from a pair of little-known songs, ruling that the dispute — a Spanish artist suing two Brits — clearly didn’t belong in his Louisiana federal courthouse.
JUICE WRLD COPYRIGHT CASE – Dr. Luke and the estate of the late Juice WRLD were hit with a copyright lawsuit that claims they unfairly cut out one of the co-writers (an artist named PD Beats) from the profits of the rapper’s 2021 track “Not Enough.”
A little more than two years ago, HYBE invested millions into Supertone, an AI voice synthesis startup. Their relationship would allow for a collaboration with an existent artist that created a new kind of artist entirely — here’s how it happened.
An AI Alliance
HYBE’s relationship with Supertone begins in February 2021, when HYBE reportedly invests $3.6 million into it. By January 2023, their partnership expands when HYBE acquires Supertone entirely for a reported price of over $30 million. Little was then known about HYBE’s plans to integrate Supertone technology into its music empire (the company’s stable of K-pop supergroups includes BTS, Tomorrow x Together and ENHYPEN) other than that HYBE’s founder and chairman, Bang Si-Hyuk, told Billboard in his recent cover story that one of HYBE’s first integrations was referred to internally as “Project L” and scheduled for May 2023.
The Digital Debut
Right on schedule, HYBE starts to tease an upcoming single from MIDNATT, a new alter-ego of popular Korean singer Lee Hyun. Two weeks later, on May 15, he releases his first single, “Masquerade,” using Supertone technology to help him translate it into six languages: English, Korean, Spanish, Japanese, Chinese and Vietnamese. Through Supertone, the singer improves his intonation and pronunciation of the languages to sound more like a native speaker. Shortly after its release, MIDNATT says that he was inspired by “talking about language barriers” with his team: “When I would listen to music in other languages, I couldn’t immerse into the music as well as in my native language, and we were talking about how we could overcome [that].”
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How It Works
Voice synthesis is best understood as a subset of generative AI that lets users manipulate their voice while talking or singing, allowing them to assume the timbre and tone of a particular celebrity, character or loved one. But some companies, like Supertone, also enable users to make other edits, like altering the language, age or gender of speech.
The Results
It’s a controversial use of AI, raising ethical questions about assuming someone else’s voice and making one’s own unrecognizable, but MIDNATT’s employment of voice-synthesis technology was largely well received. “After I experienced it myself, I think it really depends on how you utilize it,” he says of using the technology. “The sense of responsibility is what matters the most. So as far as it is used in the music, I think it is a great opportunity for me to make [my song] more accessible and more immersive to the fans worldwide.”
This story will appear in the Oct. 21, 2023, issue of Billboard.
Founded in 2017, Techstars Music was known as the premier music technology accelerator, providing funding and support to now-thriving companies like Endel, Splash, Hello Tickets, Community and Replica Studios. The company chose 10 startups each year and provided $120,000 to each, along with mentoring from its network of 316 music and entertainment executives from HYBE, Sony Music Entertainment, Warner Music Group, Concord, Quality Control and more.
Of the 70 startups that Techstars selected, the most successful 21 have gone on to raise over $263 million in follow-on funding since. Despite those successes, managing director Bob Moczydlowsky says that the company chose its final class this past summer — but his career as an investor is far from over.
Why is Techstars Music shutting down?
Even though the way we have been investing has been working, it has been held back by the constraints of an accelerator, which we feel is an outdated model. The amount of capital we can provide is limited. It is also held back by the constraints of labeling it “music.” We want to invest in companies solving problems for music, not music tech companies, but the reality is that founders see “Techstars Music” on the door and they bring us their startup to help kids learn to play a violin. We actually believe instruments will become irrelevant and software will mainly replace them. Our thesis now is we want to fund the future of entertainment, self-expression and live events. This changes almost nothing in how we have already been operating and evaluating companies, but we want this thesis publicly understood.
Why are accelerators outdated?
The accelerator is a great product. It was designed around the time of the financial crisis of 2008. Because angel and pre-seed investors largely disappeared, accelerators fit a need and had great returns. Plus, it helped new companies get the mentorship they needed. Now the cost of running a business — talent, travel, etc. — has grown. Smart founders can now find online most of the information accelerators provide on how to structure a company. The economic deal that accelerators offer to founders has not evolved in that time, so every year, the accelerator is providing the same amount of capital investment, buying the same amount of equity from founders, but that capital is buying fewer and fewer things … We need to make more investments and do it on a rolling, year-round basis. We need to provide more capital too so companies can better leverage the connections we can give them.
What does the future of your investing look like post-Techstars Music?
The goal is to be the best investor in this category. To do so we need to make more investments and do it on a rolling, year-round basis. We need to provide more capital too, so companies can leverage the connections we can give them better.
You’re not trying to invest in music companies but “invest in companies solving problems for music.” Can you explain what that means?
Music startups typically do not generate venture returns … You also have competitors like Apple, Amazon and Google that use music as a loss leader for other products. That makes investing in that sort of music startup very difficult, especially a pre-seed investor like us.
Because streaming has become the dominant way we are listening to music, it has altered a lot of other habits around it as a consequence … I want to invest in companies solving problems for music, like Community, a direct-messaging service. It’s not musical at all, but it is used by artists and enables them to connect to their fans directly better than ever.
Do you think it is helpful, given investors know how tough music businesses are to run, to define themselves as something besides primarily a music company?
Let me be clear: You cannot change how you define your company to make investors happy, or you will not raise capital, but you need to be savvy as a founder about how you present your business and find investors who are looking for you. One of the myths about raising venture capital is that founders persuade investors to invest in them. Investors are out there looking for companies to invest in all day long, every day. We are just trying to find companies that match our thesis.
We think about it like this: we see the problems the music business has. We see how music and entertainment are going to change over the years, so let’s invest in the things that solve the problems or get us closer to those new realities, not just saying “Hey, let’s see all the music tech startups.”
Do you think this is a particularly fruitful time for investors, given the rapid rise of AI, the maturation of streaming, etc.?
There is more opportunity and more radical change coming in the next five to 10 years than we’ve had in the last decade. The last 10 years were about maturing the streaming market and putting rights owners and artists on stable financial footing. The music business is now as big as it has ever been by revenue, but growth is slowing in the number of new subscribers. We’re at a point where music streaming 1.0 is perfected — what does streaming 2.0 look like? We’re shutting Techstars Music down so that we can come back with the right vehicle for the next 10 years.
In your crystal ball, what do you think Streaming 2.0 looks like?
If Streaming 1.0 was about making all the music play, Streaming 2.0 should be about being able to play with all the music.
Your thesis focuses not just on music now, but live events, self-expression and entertainment altogether. Do you see these sectors converging?
Absolutely. What is the difference between an athlete, a musician, a TV star at this point in terms of the media they deliver? They all have podcasts, documentaries, merchandise, fashion lines — of course, they all have their specialty, but I think it is evident that there will be even more convergence coming soon.
This story will appear in the Oct. 21, 2023, issue of Billboard.
