YouTube is in the midst of a new round of high-stakes negotiations with the three major record labels to secure licensing deals for its AI-generated music initiatives.
The talks with Sony Music Entertainment, Warner Records and Universal Music Group follow their lawsuits against generative AI startups Suno and Udio, both of which are accused of using copyrighted music without permission to train their text-to-audio models.
The lawsuits, led by the Recording Industry Association of America (RIAA), highlight the music industry’s fierce defense of intellectual property rights. Suno and Udio are alleged to have copied large quantities of sound recordings, violating copyright laws and sparking a significant industry backlash. As a result, YouTube aims to avoid similar problems by obtaining appropriate licenses.
This is stated in a report by the Financial Timeswho said YouTube is offering substantial lump sum payments to major labels to license their music, thereby ensuring that its AI tools, which can clone the styles of popular artists, are developed ethically and legally. The approach mirrors previous deals between record labels and social media platforms such as Meta and TikTok, focusing on one-off payments rather than ongoing royalties.
In November, YouTube launched Dream Track, a project that allowed a select group of creators to generate 30-second audio clips that mimicked contemporary superstars like Charli XCX and John Legend. While YouTube has no plans to expand Dream Track, the company appears to be interested in exploring new AI-powered music projects — provided it can secure the necessary permissions from artists and labels.
A key aspect of YouTube's negotiations, for FOOTinvolves licensing each artist, which can be tricky given the ethical concerns surrounding AI-generated music. Earlier this year, more than 200 artists, including Billie Eilish, FINNEAS and Chase & Status, signed an open letter calling for stricter regulations to protect human creativity.
Despite these challenges, YouTube’s initiative could set a precedent for how the music industry adapts to AI. By offering one-time payments and potentially implementing an opt-in model, whereby individual artists can choose to have their music used in AI projects, YouTube is thinking of innovative ways to address many of the sensitivities related to AI-generated content.
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