Is Your AI-Generated Music Ready for Licensing?

Image Credit: Possessed Photography | Unsplash

As artificial intelligence reshapes creative industries, the music world is grappling with questions around licensing and fair compensation. German collecting society GEMA is pioneering efforts to ensure that songwriters and rights holders are fairly compensated when AI companies use their works for training models. This new approach could redefine the future of AI-generated music and how it is monetized.

GEMA’s Vision for Songwriters in the Age of AI

GEMA’s licensing model focuses on not just the use of music for training AI models but also on ensuring songwriters are involved in the financial outcomes from the AI-generated content. Rather than a simple one-time payment, GEMA proposes an ongoing royalty structure that reflects the potentially massive revenue streams AI music could create. This approach aims to protect creators’ rights as AI-generated content becomes more mainstream.

[See our previous report: Suno’s AI Symphony: Revolutionizing Music Creation or Raising Copyright Concerns?]

The Challenge of Tracing AI Creations

A key issue raised in this new model is the complexity of tracking AI-generated music back to the original songs used in training. Without precise tracking mechanisms, attributing royalties becomes a challenge. GEMA suggests an alternative where royalties are collected from all AI music outputs, with these funds distributed according to predefined rules, ensuring fair compensation even without direct tracing of each song.

[See our previous report: The AI Music Revolution: Can Algorithms Outshine Human Creativity?]

Musicians Weigh In: A Divided Field

In a joint study commissioned by GEMA and Sacem, researchers surveyed more than 15,000 musicians and publishers about AI's role in music. While 35% of creators have already adopted AI tools, a significant number remain cautious. With 71% fearing that AI could jeopardize their livelihood, concerns around fair compensation and the long-term impact of AI on the industry loom large. However, many also see AI as a tool that can unlock new forms of creativity.

[See our previous report: Harmony or Discord? The Future of AI in Music According to Daniel Bedingfield]

The Future Financials of AI Music

The same study predicts a substantial growth in AI-music revenue, estimating $300 million in 2023 and potentially surpassing $3 billion by 2028. These figures, while speculative, illustrate the potential profitability of AI in the music world. However, the need for policies that ensure creators share in this growing market is clear.

[See our previous report: Boosting Creativity: Daily Free Credits for Pro/Premier Creators on Suno]

The Road Ahead for AI Music Licensing

As AI continues to disrupt the music industry, the need for transparent and fair licensing frameworks is urgent. GEMA’s initiative to bring songwriters into the equation sets the stage for discussions around how AI music will be regulated, monetized, and ultimately, how it can be licensed. With the landscape rapidly evolving, creators and AI developers alike must navigate this new frontier carefully to ensure a future where music remains a sustainable art form.

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Source: Musically

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