YouTube tries convincing record labels to license music for AI song generator

🌈 Abstract

The article discusses YouTube's negotiations with record labels to license their songs for use in artificial intelligence (AI) tools that can clone popular artists' music. YouTube is seeking to legally train AI song generators and is offering upfront payments to major labels to convince more artists to allow their music to be used in this way. However, many artists remain opposed to AI music generation, fearing it could undermine the value of their work.

🙋 Q&A

[01] YouTube's Negotiations with Record Labels

1. What is YouTube's goal in negotiating with record labels?

• YouTube is seeking to license songs from record labels to legally train AI song generators, as it prepares to launch new AI music tools this year.
• YouTube has offered lump sums of cash to the major labels (Sony, Warner, and Universal) to try to convince more artists to allow their music to be used in training AI software.

2. What are the concerns of artists and the music industry regarding the use of AI in music generation?

• Many artists remain fiercely opposed to AI music generation, fearing it could undermine the value of their work.
• The music industry is wrestling with this issue, as technically the companies have the copyrights, but they need to think through how to handle it without being seen as "Luddites".
• Some artists, such as Billie Eilish and the estate of Frank Sinatra, have signed an open letter stating that "Unchecked, AI will set in motion a race to the bottom that will degrade the value of our work and prevent us from being fairly compensated for it."

3. How do the deals being negotiated between YouTube and the record labels differ from typical licensing agreements?

• The deals would not be blanket licenses but rather would apply to a select group of artists.
• It would be up to the labels to encourage their artists to participate in the new projects, so the final amounts YouTube might be willing to pay the labels are undetermined.
• The deals would look more like the one-off payments from social media companies to entertainment groups for access to their music, rather than the royalty-based arrangements labels have with Spotify or Apple.

[02] Legal Challenges and Industry Responses

1. What legal actions are the record labels taking against AI companies?

• The leading record companies have sued two AI start-ups, Suno and Udio, alleging that they are illegally using copyrighted recordings to train their AI models.
• A music industry group is seeking "up to $150,000 per work infringed" in these lawsuits.

2. How are the record labels trying to get ahead of disruptive technology this time?

• After facing the threat of extinction following the rise of Napster in the 2000s, the music companies are trying to get involved with licensed products that use AI to create songs using their music copyrights, and get paid for it.
• The labels are keen to get involved with licensed products that use AI to create songs using their music copyrights, in order to get paid for it.