US Copyright Office Releases Second Report on AI and Copyright
January 29, 2025
A new U.S. Copyright Office report reaffirms that AI-generated works cannot be copyrighted unless they include a significant human contribution. While simply prompting an AI to generate a song does not establish authorship, the report clarifies that using AI as an “assistive tool” does not automatically void copyright protection. Works that involve AI to help human creativity—such as AI-assisted brainstorming or studio enhancements—may still qualify for copyright on a case-by-case basis.
The report cites industry perspectives, including Universal Music Group’s stance that prompting an AI is no different from telling a musician to “write a love song” without contributing creatively. The Recording Academy also noted that artists already use AI as a tool to aid music creation.
This study is the second in a series of AI-related copyright reviews. A final report will address whether AI companies infringe on copyrights when training models on vast amounts of protected material which is an issue currently at the center of major lawsuits.
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Tags: Copyright, Artificial Intelligence
Spotify Wins Lawsuit Over Audiobook Bundling, Judge Dismisses MLC’s Claims
January 29, 2025
A federal judge has dismissed a lawsuit from the Mechanical Licensing Collective (MLC) against Spotify, ruling that the streamer legally reduced music royalty payments after introducing audiobooks to its platform. The lawsuit, filed in May 2024 in the U.S. court for the Southern District of New York, alleged that Spotify used the audiobook addition as a pretext to pay a lower “bundled” royalty rate, which Billboard estimated could save Spotify around $150 million annually.
Judge Analisa Torres ruled that Spotify’s move was permitted under federal regulations, emphasizing that audiobook streaming is a distinct service with more than “token value.” The court rejected MLC’s claim that audiobooks were merely a technical loophole, noting that users receive 15 hours of audiobook streaming per month, which has clear monetary and intrinsic value.
Spotify previously called the lawsuit “nonsensical” and argued that its audiobook expansion benefits both artists and consumers. The judge also noted that Spotify initially overpaid royalties before officially classifying its Premium tier as a bundle. MLC is unable to refile the case but may appeal the decision.
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Tags: Royalties, Court Opinion
Roc Nation partners with South Korean Company Musicow to Launch A Music Royalty Trading Platform in the US
January 27, 2025
Roc Nation, founded by rapper Jay-Z, is partnering with South Korean fintech company Musicow to introduce a music royalty trading platform in the U.S. Scheduled to launch in the first quarter of 2025, the platform will enable music rights owners to fractionalize royalty revenues and allow fans to purchase shares, earning alongside their favorite artists.
Musicow, founded in Korea in 2016, has pioneered the fractional sale of music copyrights, with a growing presence in the U.S. since 2022. Roc Nation is reportedly investing $5 million to acquire a 20% stake in the company. Roc Nation Vice Chairman Jay Brown emphasized the mission of empowering artists and democratizing financial opportunities in the music industry.
This partnership positions Roc Nation and Musicow as direct competitors to JKBX, a platform already operating in the U.S. music royalty market. The move reflects the growing trend of treating music royalties as an alternative asset class, offering fans new ways to engage with the music ecosystem.
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Tags: Royalties, Bowie Bonds
Spotify and Universal Music Group Sign New Multi-Year Licensing Deal, Including Direct Publishing Agreement
January 26, 2025
Spotify and Universal Music Group (UMG) have finalized a new multi-year licensing agreement covering both recorded music and publishing. A key component of the deal is a direct agreement between Spotify and Universal Music Publishing Group (UMPG) in the U.S. and several other territories, designed to strengthen the connection between songwriters and the platform.
The partnership introduces new initiatives, including potential “superfan” subscription tiers, bundled content offerings, and enhanced audio-visual features to drive deeper audience engagement. UMG CEO Sir Lucian Grainge emphasized that the agreement aligns with UMG’s Streaming 2.0 vision, focusing on artist-centric monetization, while Spotify CEO Daniel Ek highlighted efforts to enhance paid music subscriptions globally.
The deal also addresses longstanding concerns over royalty rates, with the National Music Publishers Association indicating potential increases. Following the announcement, UMG’s stock saw a significant rise, reflecting investor confidence in the partnership’s impact.
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Tags: Licensing
APG Sues Create Music Group Over Alleged Copyright Infringement and Bogus Artist Contracts
January 22, 2025
Indie music company, Artist Publishing Group (APG) has filed a lawsuit against Create Music Group (CMG), accusing the company of “massive willful copyright infringement” and fraudulent business practices. Filed in the U.S. District Court for the Central District of California, the complaint alleges that CMG falsely claimed copyrights on YouTube videos and distributed APG-owned works without authorization. APG also accuses CMG of coercing artists into signing “bogus” contracts, despite their existing agreements with APG.
CMG denies the allegations, dismissing them as “legal theatrics” aimed at hindering its innovation. APG contends that CMG’s practices have inflated its market valuation, which reached $1 billion after a $165 million funding round in 2024. APG seeks punitive damages and compensation, including revenue from the allegedly infringed works.
The lawsuit cites 143 recordings and 31 compositions, including works by artists such as Cico P. and Sdot Go. CMG is also accused of plagiarism, with APG presenting evidence of similarities between VaporGod’s “Diamondz n Roses” and CMG’s “Montagem Diamante Rosa.”
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Tags: Royalties, Fraud, Streaming
Vimeo Wins Appeal in 16-Year Copyright Battle with Record Labels
January 16, 2025
Vimeo has secured a victory in a long-running copyright lawsuit filed by Universal Music Group’s Capitol Records and EMI subsidiaries, among others. The U.S. Court of Appeals for the Second Circuit upheld a lower court’s ruling, finding that Vimeo is protected under the Digital Millennium Copyright Act (DMCA)’s “safe harbor” provisions, which shield platforms from liability for user-uploaded content if they respond to takedown notices.
The lawsuit, originally filed in 2009, alleged that Vimeo ignored clear signs of copyright infringement on its “Lip Dub Stars” channel. However, the court determined there was insufficient evidence to prove Vimeo employees had “red flag” knowledge of unauthorized music use or that Vimeo exercised significant control over user content.
The decision also highlighted Vimeo’s limited ability to moderate content, given its small staff compared to millions of videos uploaded annually and noted that denying DMCA protections would impose unsustainable costs on the platform. Vimeo welcomed the ruling, emphasizing its commitment to supporting artistic innovation while respecting intellectual property rights.
The court also affirmed that DMCA protections extend to recordings made both before and after 1972, reinforcing a precedent set in prior rulings.
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Tags: Copyright
Rapper Drake Files Defamation Lawsuit Against Universal Music Group Over Kendrick Lamar Diss Track
January 15, 2025
Rapper Drake has escalated his legal battle with Universal Music Group (UMG), filing a defamation lawsuit in the U.S. District Court for the Southern District of New York He accuses UMG of knowingly promoting rival rapper Kendrick Lamar’s diss track, “Not Like Us,” which Drake claims contains “false and malicious” allegations that have endangered his safety and subjected him to online harassment. The lawsuit focuses on UMG’s role in monetizing and exploiting the song’s content rather than on Lamar’s involvement.
Drake’s legal team argues that UMG prioritized profits over the safety of its artists, alleging the label deliberately fueled a harmful narrative. The lawsuit follows a withdrawn petition in which Drake accused UMG and Spotify of manipulating streaming numbers for “Not Like Us” through bots and pay-to-play (payola) tactics, a claim both companies previously denied.
UMG and Interscope, which released Lamar’s “Not Like Us,” have not yet responded to the new filing. Both Drake and Lamar are signed to UMG through Republic Records and Interscope, respectively. “Not Like Us” was part of a heated feud between the two artists, topping the Billboard Hot 100 in May 2024.
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Tags: Defamation