Business
Page: 220
BMI, which was acquired by New Mountain Capital in February, last night notified songwriters and publishers that its previous owners, mainly radio and TV stations, have followed through on their commitment to disburse a $100 million bonus from the undisclosed amount received for the sale — which sources say was over $1 billion — to songwriters and publishers. What’s more, it disclosed to each songwriter and publisher how much they will be receiving.
Songwriters and publishers expressed gratitude for the payout — after all, the sellers were under no legal obligation to share any of the sale price with BMI members. In fact, some consider it a very generous reward from the prior owners. However, other sources have suggested that morally, the previous owners should shared something, considering it was songwriters’ and music publishers’ rights that generated all the licensing revenue and created the value for the sale price to be achieved.
Trending on Billboard
In any event, publishers and songwriters contacted by Billboard Thursday (March 28) said they were engaging in mathematical analysis to try and figure out what their payment represented, even though BMI laid out on its website some details on how it arrived at each individual payout. According to the website, BMI looked at the most recent five years of payouts (2019-2023) and used that as a basis to determine how much each payout should be — after taking into consideration whether the songwriter’s catalog was there for all five years or is still there even if the songwriter has left. Then, it apparently divided songwriters into tiers based on undisclosed parameters and paid every songwriter or publisher in that tier the same amount according to the website. Only songwriters or publishers that had received over $500 in royalties were eligible for a bonus distribution.
BMI didn’t provide any information on how it calculated allocations other than to say it split the bonus payouts evenly between songwriters and publishers — and that sold catalogs’ bonuses would be pro-rated between the new owners and old owners. But it did disclose that the method it used “is different from how we calculate our quarterly distributions,” according to the letter signed by BMI president/CEO Mike O’Neill that accompanied news of the allocation. “We thought very carefully about how we determined this allocation and made every effort to be as inclusive as possible and have it applied to the greatest number of earning BMI affiliates,” O’Neill’s letter stated. “Your allocation is truly well deserved, and I’m very pleased to deliver it to you on behalf of BMI’s former shareholders. Moving forward, your future with BMI is brighter than ever.”
Meanwhile, publishers’ data teams spent the day analyzing the payouts, looking at instances where they could see payouts on multiple catalogs or songwriters with similar characteristics for the five-year terms in order to compare them. Others measured their bonus payout as a percentage of the $100 million or compared it to the suspected sale price.
Still others decided that the best way to measure the bonus was to add up all the royalties BMI paid for a song catalog for the five-year period to see what percentage of that amount the bonus comprised; and then to compare that percentage with other songwriters or catalogs. One such catalog, an A-level writer/producer with several No. 1 hits during the period, earned about $4.1 million from BMI over those five years and received a bonus of $47,000 — or a 1.15% bonus on the earnings for the period, according to one source who had access to that data.
Another publishing source says comparing songwriters on its rosters who are equally successful to what each received as a bonus created quite a bit of confusion. In one instance, when they compared two songwriters at the same level, both got the same amount even though one has been at BMI for all five years while the other has only been there for only a few of the five years. “BMI might file this under ‘no good deed goes unpunished’ or ‘looking a gift horse in the mouth,’ but so far I can’t see any rhyme or reason on how they are determining the payouts,” that publisher says, but quickly adds, “Having said that, I am very happy for getting the money.”
A BMI representative was unavailable to comment at deadline — the organization was holding its Trailblazers of Gospel Music Awards event in Atlanta on Thursday. But the O’Neill letter to those receiving bonus payments also noted that the new owners will give BMI increased capabilities and leave the organization in “the best possible position to tap into numerous growth opportunities that will ensure your long-term success…increasing your distributions, elevating the services we provide and exploring new revenue streams that will benefit you.”
LONDON — Utopia Music is planning to rebrand as Proper Group AG, named after its core physical music distribution business, to reflect changes to the Swiss-based firm’s “strategic direction,” the company said Thursday (March 28).
The proposed name change, which needs to be approved by shareholders, comes almost two months after co-founder and former head Mattias Hjelmstedt exited Utopia Music following a shake-up of its executive ranks.
“As Utopia has evolved under new leadership, we recognize the need to align our brand with our new strategy and as a result, new market positioning,” said Michael Stebler, who was appointed CEO in January, in a statement sent to Billboard.
“Our previous brand identity doesn’t accurately reflect who we are today and where we aim to go in the future,” said the chief executive – a former managing director of Investment Advisors Zug AG, which operated on behalf of Utopia’s majority shareholder group. Like Utopia Music, Investment Advisors Zug AG is headquartered in the scenic Swiss town of Zug, located close to Zurich.
Trending on Billboard
Utopia Music acquired Proper Music Group, the United Kingdom’s biggest independent physical music distributor, which provides distribution services for nearly 6,000 indie labels and service companies, for an undisclosed sum in January 2022.
Eight months later, the company bought up the assets of U.K.-based Cinram Novum — which provides warehouse, fulfillment and distribution services to music labels and home entertainment companies, including Universal Music Group, Sony Music Entertainment and [PIAS] — and renamed it Utopia Distribution Services (UDS).
Both acquisitions took place during a period of intense hyper-growth between 2020 and 2022 when Utopia rapidly acquired 15 companies spanning music tech, finance, publishing, marketing and distribution.
A well-documented downsizing followed, encompassing multiple rounds of job cuts, company divestments and ongoing legal actions, eventually leading to the appointment of a new CEO and executive team at the start of the year.
Changing the company’s name to Proper Group “represents a fresh start,” said Stebler, “and reflects the changes to our strategic direction, where distribution sits at the core of the commercial value chain.”
Under the new arrangement, Billboard understands that Utopia/Proper Group will be divided into four main departments: Proper Distribution, Proper Payments, Proper Processing and Proper Music Data.
Together, the company says, they will provide clients with a “comprehensive suite of tech services” — including cross-platform analytics and royalty tracking, processing and payments — all built around the firm’s music distribution business, which has long generated the bulk of its revenue.
“By leveraging the Proper brand,” the company will “benefit from the positive and strong brand equity Proper has in the music industry,” said Stebler.
The company’s executive team remains unchanged with Stebler supported by deputy CEOs Alain Couttolenc and Drew Hill, a long-serving veteran of the U.K. physical music industry, who doubles as Utopia/Proper Group’s chief of distribution.
Hill’s responsibilities include overseeing the U.K.’s biggest distribution warehouse for physical music and home entertainment — a 25,000-square meter facility in the town of Bicester with handling capacity of up to 250,000 units per day — which Utopia opened last year as part of a £100 million ($125 million) long-term deal with international logistics company DP World.
More recently, Utopia successfully secured around half of a Series C funding round (understood to total more than 15 million euros) with a second tranche of C-round funding underway. The funds will be used to drive commercial growth, enhance product development and strengthen the company’s balance sheet, Stebler told Billboard in January.
Shareholders will get to vote on the proposed name change when Utopia holds its Annual General Meeting at the start of May.
Hipgnosis Songs Fund, the troubled publicly traded music royalty company that owns full or partial rights to song catalogs from the Red Hot Chili Peppers, Shakira, Justin Bieber and Neil Young, issued a damning report Thursday (March 28) compiled by a third party that details missteps the fund and its investment advisor made leading to a 26% portfolio downgrade earlier this month.
The London-listed fund, which became the poster child for music as an investable asset class, cut the value of its portfolio earlier this month and told investors not to expect the resumption of dividends “for the foreseeable future” while the company focuses on paying down debts.
Trending on Billboard
Compiled by the board’s lead independent adviser, Shot Tower Capital, the report found that Hipgnosis Song Management, run by Hipgnosis founder and music manager Merck Mercuriadis, materially overstated the fund’s revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) and supported catalog acquisitions with financial analysis that failed to meet “music industry standards.” Hipgnosis Songs Fund itself overstated the scope of its music assets — the kinds of royalties and administration rights it owned and its share of those rights — in disclosures to investors and regulators. And in a pitch last September to investors to sell some 29 catalogs to a sister Hipgnosis company, the fund included a better-than-could-be-expected post-deal valuation, the report found.
In a statement announcing the report, the fund’s board said it is exploring “all options for the future of the company,” and that it will release its strategic review and proposals by April 26.
Hipgnosis Song Management said it was still reviewing the report, which it received late yesterday. “However, there are aspects of the report that HSM strongly disagrees with and considers to be factually inaccurate and misleading,” the company stated.
“Throughout the life of the company, HSM has worked constructively, and in good faith, with the company’s board and other advisers to deliver the best outcome for the company’s shareholders,” the company continued. “Each adviser was recruited by the company’s board to advise on their specific area of expertise and with clear areas of responsibility.”
Investors found heart in the report; at the close of London markets on Thursday, Hipgnosis Songs Fund was trading at 0.69 pounds ($0.87), up 8.3% on the day and 30.43% above its 52-week low of 0.53 pounds ($0.69) set on March 4.
Here are some of the most revealing findings from Shot Tower’s report:
“The Fund overpa(id) for the majority of the catalogs it acquired.”
Hipgnosis Songs Fund, at the investment adviser’s direction, famously paid top-dollar for music assets — more than $2.2 billion overall. Today, those assets are worth $1.948 billion, with 67 of 105 acquisition deals currently worth less than their purchase price.
The investment advisor’s “diligence and underwriting standards” are the reason why.
Hipgnosis Song Management predicted aggressive growth, but three-quarters of its catalogs missed those expectations “by an average of 23% annually” and the overall annual royalties the fund earned from catalogs has fallen to $121.6 million from $134.2 million.
“Passive catalogs grew significantly better than catalogs managed by the Investment Advisor.“
A significant portion of the rights the fund had in its portfolio included passive rights. However, Mercuriadis and Hipgnosis Songs Fund’s board frequently touted that their industry expertise would be a valuable tool to make these rights outperform passive catalogs.
“The fund’s public reports contain disclosures that imply greater ownership control over songs… than would have been the case.”
Multiple reports from the fund presented that it had 100% “interest ownership” in acquired catalogs, which suggests ownership and control. “In fact, a material number of catalogs represent only a fractional, non-controlling income stream in the compositions without any copyright ownership,” the report reads.
Despite promoting itself as a caretaker of artists’ and songwriters’ works, Mercuriadis’ investment advisory group “failed to invest in systems and provide the services required to effectively manage a catalog of 40,000+ songs generating +120 million of royalty income annually.”
Hipgnosis Songs Management has not tracked or managed the catalog at the song level, and its legal bookkeeping included numerous oversights and missing files that could present complications to the collection of royalties.
The report found “multiple areas where fund expenses appear unrelated to the fund and/or are excessive.”
These costly items included $1.5 to $2 million spent annually for awards shows and public relations, “including significant payments to multiple music industry periodicals”; $1.2 million in fees in 2023 from deals the fund ended up not doing; and $5.7 million in fees related to the abandoned deal to sell catalogs to its sister fund, Hipgnosis Songs Capital.
Warner Chappell has signed Teddy Swims to a global publishing deal. Signed to Warner Records for his recorded music, the new deal unites his entire catalog under the WMG umbrella. News of the deal arrives the same week that his breakthrough hit “Lose Control” reached No. 1 on the Hot 100.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Position Music has signed Zach Skelton, co-writer for Shawn Mendes, OneRepublic, Paul McCartney, Lil Nas X, and more, to a worldwide publishing deal.
Avex USA Publishing has signed DJ Smallz 732 to a global publishing deal. One of the most sought-after Jersey club producers, Smallz signs his deal on the heels of co-creating “Everybody” by Nick Minaj and Lil Uzi Vert from Minaj’s hit album Pink Friday 2.
Trending on Billboard
Red Bull‘s publishing division has signed producer Charlie Shuffler to a global deal. Best known for his records with Lil Yachty, Trippie Redd, Rico Nasty and Lil Peep, Shuffler has been a tastemaker since the early days of SoundCloud rap.
Big Machine Music has signed artist/writer George Birge to an exclusive co-publishing deal. News of the agreement arrives as Birge heads out on the road as the opener for Parker McCollum’s tour and just before the singer opens for Luke Bryan’s tour.
Concord Music Publishing has signed soul singer-songwriter William Bell to a publishing administration deal, including a selection of his back catalog and all future works. A legendary signee of Stax Records and inductee in the Memphis Music Hall of Fame, Bell has been making timeless soul records since his first album The Soul of a Bell, released in 1967.
BeatStars has announced the launch of Creator Rights Agency, its new division designed to help make clearing intellectual property rights more streamlined and affordable. It is described in the company’s press release as an “end-to-end service that allows creators to get data-driven recommendations from experts for licensing, protecting, and getting paid for their intellectual property. The CRA consolidates management, legal, and accounting services needed by creators in today’s music industry, charging a 10% commission only on the deals that are successfully negotiated by the CRA.”
BMG has acquired Eurodance pioneer Dr. Alban‘s recorded music interest in his catalog, including defining records like “It’s My Life” and “Sing Hallelujah.” The acquisition further bolsters BMG’s interests in 90s Eurodance. Recently, the company also holds a stake in “Planet of the Bass” by Kyle Gordon, which went viral on TikTok for its parody of the genre.
Bella Figura Music has acquired the writer’s share of The Human League-founder Adrian Wright‘s catalog. Wright’s current publisher will now work with Bella Figura’s sync and creative team to maximize commercial opportunities for his catalog.
Park Ave West Songs, founded by songwriter KT Mack, has signed Chris Canterbury to a global publishing deal.
Wise Music Group has signed Portico Quartet to its publishing roster through Campbell Connelly & Co. The influential composers and producers have been a mainstay in UK music their debut album Knee-Deep in the North Sea, was nominated for the Mercury Prize in 2008.
The Last Briefing: Cat Stevens Signs With UMPG
Universal Music Group announced on Thursday (March 28) that its artists will soon have the ability to tease unreleased music on Spotify.
Sharing snippets of unreleased songs on social media has been one of the most popular promotional methods for artists during the TikTok era (sometimes to the chagrin of songwriters). In many instances, artists haven’t even finished writing the song that they tease. But fan enthusiasm can make these scraps of music go viral anyway, especially on TikTok, sending artists scrambling to write another verse, record a full song, and release it as soon as possible — hopefully to a rapturous reception.
The Universal Music Group announcement is notable because it comes as the company’s stand-off with TikTok nears the end of its second month. Official recordings of UMG acts are not currently available on the app. (Same goes for many, but not all, songs that feature contributions from UMPG songwriters.) While most UMG artists continue to use the app as a social tool to communicate with their followers, their ability to promote their music on TikTok is severely limited.
Teasing songs on Spotify represents a potential alternative for these acts. “We’re excited to broaden our relationship with Spotify through the introduction of new content offerings and collaborations that will bring deeper ‘social music’ experiences to the platform,” UMG chairman and CEO Lucian Grainge said in a statement.
Trending on Billboard
Spotify founder and CEO Daniel Ek added that “the forthcoming features will put more power in the hands of artists and their teams to help them authentically express themselves, efficiently promote their work, and better monetize their art.”
UMG did not say when its artists would be able to start sharing pre-release snippets on the platform. It’s also not clear the extent to which Spotify users will actively hunt for pre-release music on the streaming service — many prefer more passive forms of engagement.
TikTok, in contrast, excels at engaging those who see fandom as a participatory sport — they want to comment on unreleased demos and make their own remixes. And for younger listeners especially, the app is often a popular source of music discovery.
Midia Research found that TikTok is the second biggest driver of music discovery for Gen Z after YouTube. U.S. TikTokers “are nearly twice as likely to discover music on short-form video platforms than the average user of social or social-form video platforms,” according to a Luminate study released in November.
Spotify is then where many of these listeners go and listen to full songs they found on TikTok. To make this process even more friction-less, TikTok launched a new feature last year that allows users to quickly save music they find on the platform to Spotify and other streaming services.
But Spotify executives have been eager to tout the streamer’s ability to drive discovery on its own. “There’s a disconnect between where music is being teased and where music is actually being streamed,” Sulinna Ong, Spotify’s global head of editorial, said at the company’s Stream On event in 2023. “The most powerful time to reach fans is when they’ve chosen to engage with music, like when they open up Spotify.”
At the same event, Spotify co-president Gustav Soderstrom said that “Spotify recommendations drive close to half of all user streams.” “Each time your music gets played on a playlist like Release Radar, you receive, on average, three times more streams from that listener over the next six months,” he added. “And when a listener decides to follow you, they listen to, on average, five times more of your music.” This recommendation system sets Spotify apart from platforms that deliver “just a fleeting moment of viral fame.”
UMG also announced on Thursday that its publishing arm inked a deal with Spotify so the platform can share music videos in the U.S. Spotify music videos launched in beta for premium users in 11 countries — but not in the U.S. — earlier in March. At the time, Charlie Hellman, Spotify’s vp and head of music product, called videos “an important part of so many artists’ tool kits.
“It’s a natural fit for them to live in the same place that more than half a billion people choose to listen to music,” Hellman added in a statement.
For decades, festivals have created weekendlong oases for music fans — and left a mind-boggling amount of waste in their wakes. But as artists and fans increasingly learn about their impact on the environment, eco-minded — and creative — organizers have started pushing to make festivals greener.
Whether headliner- (solar power) or supporting act-size (“Pee into tea,” anyone?), their ideas are making the live space more sustainable. Just imagine if they could all happen in one place. Below, Billboard digs into a look at the eco-friendly festival of the future.
Catch Some Rays
Illustration by Sinelab
Most festival stages are powered by generators burning diesel fuel, but advances in solar technology now make it possible to store and generate enough power to meet a major festival’s heavy energy needs. Late last year, Massive Attack announced Act 1.5, the first 100% solar-powered festival in the United Kingdom, with the help of solar panels and battery packs that store sufficient energy on site without needing diesel generators.
Trending on Billboard
It Takes a Village
Illustration by Sinelab
Tennessee’s Bonnaroo offers fans interested in sustainability a dedicated place at the festival to organize and learn about new green efforts proposed by its nonprofit division, Bonnaroo Works Fund. That includes the Roo Works cafe, where green entrepreneurs can pitch their ideas in a group setting; a nonprofit village where patrons can interact with green groups; a “learning garden” highlighting sustainable farming practices; and a volunteer program called Rooduce, Roouse and Roocycle.
Keeper Cups
Illustration by Sinelab
Single-use beverage cups are a major source of festival landfill waste. Companies like r.Cup have begun working with major promoters like Goldenvoice to switch to washable, reusable cups, which are collected each night and washed at a local cleaning center. In 2023, r.Cup’s program diverted 1.1 tons (roughly 30,000 cups per day) of waste from local landfills.
Plant Seeds of Change
Illustration by Sinelab
To offset the carbon dioxide emissions of large events, promoters are increasingly planting trees and creating forest reserves. Groups like the European Festival Forest focus their offset efforts in certain regions of the globe, like Iceland, while other organizers plant and restore forests at festival sites for future concertgoers’ benefit.
Making (Vegan) Concessions
Illustration by Sinelab
In 2022, Goldenvoice’s Cruel World Festival in Pasadena, Calif., launched the largest vegan and vegetarian dining pavilion for any festival west of the Mississippi, with 10 vegan and 20 vegetarian vendors offering items like maneatingplant’s vegan bao buns, dairy-free milkshakes from Monty’s Good Burger and plant-based sushi burritos from Oona Sushi.
Water Works
Illustration by Sinelab
Last year, Amsterdam’s DGTL festival launched an initiative to protect the site’s limited groundwater supply — it’s located within an industrial port in the city — by partnering with local sanitation companies to, well, “make tea out of pee.” By harnessing the same water purification technology that’s used to convert wastewater in space, DGTL created water reuse applications that will likely be expanded in the future.
Wipe Deforestation Out
Illustration by Sinelab
Festivals like Lollapalooza and Outside Lands have switched to bamboo-based toilet paper this year, not because of the material’s post-flush qualities but to help curb deforestation. Bamboo grows much faster than trees cultivated for paper products, and activists see it as a possible long-term solution to the developing world’s need for lumber, which is increasing in price as deforestation continues.
Start a Movement
Illustration by Sinelab
For its Music of the Spheres tour, Coldplay deployed a kinetic dancefloor, harnessing the crowd’s movement to activate LED lights and other visuals — and to generate electricity that was then routed to power elements of the production. On the tour, custom-made Energy Centers were also assembled in a circle for fans to generate energy by riding stationary bikes.
Wrist Watch
Illustration by Sinelab
Light-up wristbands are now common audience accessories on major tours (and at some festivals), though some activists worry about the waste they create. For its Music of the Spheres tour, Coldplay partnered with Canadian company Pixmob to make biodegradable light-up wristbands — the first of their kind — from compostable plant-based plastics. Now Pixmob only makes biodegradable wristbands, having done so for events like the Super Bowl and the Olympic Games and tours by Taylor Swift and Imagine Dragons.
This story will appear in the March 30, 2024, issue of Billboard.

Attorneys for Universal Music Group CEO Lucian Grainge fired back at a lawsuit that claims he and the label “aided and abetted” Sean “Diddy” Combs in his alleged sexual abuse, saying the accusations are so “offensively false” that they plan to seek legal penalties against the lawyer who filed them.
In a motion to dismiss all claims against UMG and Grainge, the label’s lawyers blasted attorney Tyrone Blackburn for filing “knowingly false allegations” of criminal wrongdoing “without the slightest factual or legal basis.” They said they would seek so-called sanctions against him in a future filing.
“A license to practice law is a privilege,” wrote Donald Zakarin, a longtime music industry litigator who represents UMG and Grainge. “Mr. Blackburn, plaintiff’s lawyer, has misused that license to self-promote, gratuitously, falsely and recklessly accusing the UMG defendants of criminal behavior.”
Trending on Billboard
The Wednesday filing came in response to a lawsuit filed last month by a producer named Rodney “Lil Rod” Jones, who says the rapper sexually assaulted and harassed him. The lawsuit is one of several abuse cases filed against Combs, in addition to an apparent federal criminal investigation that led to raids of his homes this week. Combs has strongly denied all allegations of wrongdoing.
But the case filed by Jones went far beyond a simple assault claim, arguing that Diddy, Grainge and many others had also violated the Racketeer Influenced and Corrupt Organizations Act – the federal RICO statute that’s more often used in criminal cases against mobsters and drug cartels. He also accused the various defendants of violating federal sex trafficking laws.
In Wednesday’s filing, UMG’s lawyers said those claims were “entirely invented by Mr. Blackburn.”
“The [complaint] hurls accusations of criminal racketeering and criminal sex trafficking against the UMG defendants, respected individuals and companies having utterly nothing to do with plaintiff’s claims,” Zakarin wrote Wednesday’s filings. “These accusations are recklessly false and, but for the fact that they are embodied in a complaint, would be libelous.”
In addition to the original allegations, UMG’s lawyers also sharply criticized Blackburn for filing a second, updated complaint this week – a filing that they claim drastically altered the allegations. In his filing, Zakarin called it the worst lawyering he had seen in nearly 50 years as an attorney.
“In all that time, I have never seen any attorney display anything remotely like the utter indifference shown by Mr. Blackburn towards his obligations as an attorney,” Zakarin wrote. “I have never seen any lawyer, in any pleading, in any court, accuse people and companies of criminal conduct without the slightest basis and then try to file an amended pleading completely jettisoning every allegation underpinning the original claims and substituting completely different and irreconcilable allegations to support the very same claims.”
In a letter to the judge Thursday, he called the UMG motion a “public relations stunt” that had been filed in bad faith. “They did not have any issues marrying themselves to Mr. Combs when it was popular. Now, suddenly … they are treating Mr. Combs like he has the plague,” Blackburn wrote in the letter.
In a statement to Billboard on Thursday, Blackburn said: “UMG should produce their financial records. Let’s see what the money was used for. Stop trying to escape liability.”
A spokesman for UMG did not immediately return a request for comment on the motion.

In November, I quit my job in generative AI to campaign for creators’ right not to have their work used for AI training without permission. I started Fairly Trained, a non-profit that certifies generative AI companies that obtain a license before training models on copyrighted works.
Mostly, I’ve felt good about this decision — but there have been a few times when I’ve questioned it. Like when a big media company, though keen to defend its own rights, told me it couldn’t find a way to stop using unfairly-trained generative AI in other domains. Or whenever demos from the latest models receive unquestioning praise despite how they’re trained. Or, last week, with the publication of a series of articles about AI music company Suno that I think downplay serious questions about the training data it uses.
Suno is an AI music generation company with impressive text-to-song capabilities. I have nothing against Suno, with one exception: Piecing together various clues, it seems likely that its model is trained on copyrighted work without rights holders’ consent.
Trending on Billboard
What are these clues? Suno refuses to reveal its training data sources. In an interview with Rolling Stone, one of its investors disclosed that Suno didn’t have deals with the labels “when the company got started” (there is no indication this has changed), that they invested in the company “with the full knowledge that music labels and publishers could sue,” and that the founders’ lack of open hostility to the music industry “doesn’t mean we’re not going to get sued.” And, though I’ve approached the company through two channels about getting certified as Fairly Trained, they’ve so far not taken me up on the offer, in contrast to the 12 other AI music companies we’ve certified for training their platforms fairly.
There is, of course, a chance that Suno licenses its training data, and I genuinely hope I’m wrong. If they correct the record, I’ll be the first to loudly and regularly trumpet the company’s fair training credentials.
But I’d like to see media coverage of companies like Suno give more weight to the question of what training data is being used. This is an existential issue for creators.
Editor’s note: Suno’s founders did not respond to requests for comment from Billboard about their training practices. Sources confirm that the company does not have licensing agreements in place with some of the most prominent music rightsholders, including the three major label groups and the National Music Publishers’ Association.
Limiting discussion of Suno’s training data to the fact that it “decline[s] to reveal details” and not explicitly stating the possibility that Suno uses copyrighted music without permission means that readers may not be aware of the potential for unfair exploitation of musicians’ work by AI music companies. This should factor into our thoughts about which AI music companies to support.
If Suno is training on copyrighted music without permission, this is likely the technological factor that sets it apart from other AI music products. The Rolling Stone article mentions some of the tough technical problems that Suno is solving — having to do with tokens, the sampling rate of audio and more — but these are problems that other companies have solved. In fact, several competitors have models as capable as Suno’s. The reason you don’t see more models like Suno’s being released to the public is that most AI music companies want to ensure training data is licensed before they release their products.
The context here is important. Some of the biggest generative AI companies in the world are using untold numbers of creators’ work without permission in order to train AI models that compete with those creators. There is, understandably, a big public outcry at this large-scale scraping of copyrighted work from the creative community. This has led to a number of lawsuits, which Rolling Stone mentions.
The fact that generative AI competes with human creators is something AI companies prefer not to talk about. But it’s undeniable. People are already listening to music from companies like Suno in place of Spotify, and generative AI listening will inevitably eat into music industry revenues — and therefore human musicians’ income — if training data isn’t licensed.
Generative AI is a powerful technology that will likely bring a number of benefits. But if we support the exploitation of people’s work for training without permission, we implicitly support the unfair destruction of the creative industries. We must instead support companies that take a fairer approach to training data.
And those companies do exist. There are a number — generally startups — taking a fairer approach, refusing to use copyrighted work without consent. They are licensing, or using public domain data, or commissioning data, or all of the above. In short, they are working hard not to train unethically. At Fairly Trained, we have certified 12 of these companies in AI music. If you want to use AI music and you care about creators’ rights, you have options.
There is a chance Suno has licensed its data. I encourage the company to disclose what it’s training its AI model on. Until we know more, I hope anyone looking to use AI music will opt instead to work with companies that we know take a fair approach to using creators’ work.
To put it simply — and to use some details pulled from Suno’s Rolling Stone interview — it doesn’t matter whether you’re a team of musicians, what you profess to think about IP, or how many pictures of famous composers you have on the walls. If you train on copyrighted work without a license, you’re not on the side of musicians. You’re unfairly exploiting their work to build something that competes with them. You’re taking from them to your gain — and their cost.
Ed Newton-Rex is the CEO of Fairly Trained and a composer. He previously founded Jukedeck, one of the first AI music companies, ran product in Europe for TikTok, and was vp of audio at Stability AI.
Concord has named veteran label executive Stephanie Hudacek president of its Rounder Records, the company announced Thursday (March 28). Hudacek, who founded and has served as president of distributor and label Soundly Music since 2017, takes over the label that is home to the likes of Billy Strings, Ruston Kelly, Sierra Farrell and Katie Pruittand has recently released posthumous albums from Gregg Allman and Dr. John.
Established in 1970 in Nashville, Rounder has been the home of artists like George Thorogood, Alison Krauss and Béla Fleck through the years, racking up 54 Grammy Awards along the way. Acquired by Concord in 2010, it’s one of eight standalone labels under the Concord Label Group umbrella, alongside Fantasy, Fearless, Loma Vista, PULSE, Easy Eye Sound, Concord Records and Concord Jazz.
Trending on Billboard
Stephanie Hudacek
“Throughout her career, Stephanie has shown a deep commitment to artists and songwriters as well as an incredible intuition for what it takes to bring their music to the world,” said Concord Label Group CEO Tom Becci, who took over the top job last August, in a statement. “She has the requisite skills to preserve the label’s distinct history while ensuring her artists and team have the resources necessary for continued success in an evolving environment.”
Prior to launching Soundly Music, where she worked with artists such as Maggie Rose and Pony Bradshaw, Hudacek was GM of Riser House Records in Nashville, working in the country and Americana realms. Before that, she was an artist and tour manager, working with the likes of Joan Baez and Darrell Scott. For the past two years, Hudacek also doubled as president of Late August Records.
“It is an unbelievable honor to be able to lead Rounder Records,” Hudacek said in a statement. “Throughout its history, Rounder has shown an uncompromising devotion to great, authentic artistry, which has made it a natural home for artists seeking the same. That is a tradition I am thrilled to carry on.”
Travis Scott is asking to be dismissed from the sprawling litigation over the 2021 disaster at the Astroworld music festival, arguing that safety and security at live events is “not the job of performing artists.”
More than 2,500 people have sued over Astroworld, which left 10 dead and hundreds injured after a crowd crush during Scott’s Nov. 5 show. They claim Scott (real name Jacques Bermon Webster II), Live Nation and other organizers were legally negligent in how they planned the event, and are collectively seeking billions in damages.
But in a motion filed Monday in Houston court, Scott’s attorneys (led by prominent litigator Daniel Petrocelli) argue that the rapper himself cannot be held liable for the tragic incident. Even though the event was promoted under Scott’s name and branding, his lawyers say that he was merely an onstage performer who is not responsible for ensuring audience safety.
Trending on Billboard
“Like any other adrenaline-inducing diversion, music festivals must balance exhilaration with safety and security—but that balance is not the job of performing artists, even those involved in promoting and marketing performances,” Petrocelli wrote. “Which only makes sense: Performing artists, even those who engage in certain promotional activities, have no inherent expertise or specialized knowledge in concert safety measures, venue security protocols, or site-design.”
And even if Scott could be theoretically held liable because of his involvement as a promotor, his lawyers say the evidence shows that he did enough to avoid any claims of negligence or other wrongdoing – arguing that he “acted diligently to protect against every reasonably apprehensible danger.”
“When, during festival planning, concerns arose about the risk of a stampede occurring in the festival site, the Scott defendants supported festival organizers’ efforts to eliminate that risk by agreeing to remove certain rides and other attractions at the site,” Petrocelli writes. “Then, when the Scott defendants were told to end the show after Mr. Scott’s guest performer finished performing, they did just that—ending the show as directed.”
The lawsuits over Astroworld, combined into one single large action in Texas state court in Houston, have spent much of the last two years in discovery, as the two sides exchange information and take depositions of key figures. Scott was deposed in October, facing questioning from plaintiffs attorneys for roughly eight hours, according to the Associated Press.
The first trial in the massive litigation is currently scheduled to start on May 6, according to court records.
With that trial date looming, many of the defendants named in the case are currently asking to be dismissed from the litigation. Earlier this month, a similar request was filed by Drake (Aubrey Graham), who was named in many of the lawsuits because he appeared on stage as a guest performer during Scott’s deadly show.
“Mr. Graham did not receive any security briefings, was not informed of any crowd control issues, injuries or deaths in the crowd, or any stop show orders at any time either before or during his 14-minute performance,” Drake’s lawyers wrote at the time.
In his motion on Monday, Scott makes similar arguments. He says that his involvement in planning was limited to “creative control” and marketing, and that he and his team were “neither responsible for nor involved in the approval of venue security, safety, or site layout decisions.”
“No one disputes that tragedy struck the Astroworld Festival,” Petrocelli wrote. “But promoting and performing at a concert do not equate to the power to control a crowd or to design a venue safely. Basic tort principles prevent imposing liability on the Scott defendants for a tragedy arising from forces legally controlled by others.”