YouTube is engaging in negotiations with prominent record labels, including Universal Music Group (UMG), Sony Music Entertainment, and Warner Records, to secure the rights to use their music for AI training purposes. Financial Times reports that the Google-owned platform is contemplating significant one-time payouts to obtain these permissions.
Expanding AI Music Capabilities
Building on its generative AI feature that replicates the style of artists like Charli XCX, John Legend, and T-Pain, YouTube is now looking to further its AI ventures. These discussions with record labels aim to enable the cloning of additional artists, broadening its AI tools beyond the initial Dream Track feature, which involved only ten musicians. Launches for these new tools are anticipated later this year.
The impact of AI-generated music is a growing concern within the music industry. Sony Music has issued stern cautions regarding the unauthorized use of its content by AI firms, and UMG has previously considered pulling its catalog from TikTok over inadequate AI safeguards. More than 200 artists, including Billie Eilish, Jon Bon Jovi, Pearl Jam, and Katy Perry, have joined voices urging tech companies to halt practices infringing on human artists' rights. Despite the concerns, tech companies are moving ahead with AI music tools, including the recently launched Stable Audio Open from Stability AI.
Copyright Infringement Lawsuits
Recently, the Recording Industry Association of America (RIAA), which represents labels like Sony, Warner, and Universal, initiated copyright infringement lawsuits against AI companies Suno and Udio. The RIAA's claims center on extensive unlicensed copying of sound recordings, seeking up to $150,000 per infringement in damages.
Unlike other AI music firms encountering legal challenges, YouTube's discussions with record labels signify a “permission first” business model. Offering lump-sum payments instead of royalty-based agreements reflects YouTube's strategic bid to lock in licenses for its AI music projects. Specific figures on the fees YouTube is willing to pay have not been revealed.
