In the wake of groundbreaking AI music deals recently announced, Music Reports has an urgent message for the music industry. Simply stated: without accurate and timely music rights data, the most ambitious AI music partnerships are unlikely to succeed, with billions in added revenue squandered. Here’s the company’s letter to the music industry, the AI music companies brokering partnerships, and the creators of critical music IP.
The following article was created in collaboration with DMN partner Music Reports.
As AI-driven music creation and distribution continue to evolve, one of the most critical factors in ensuring fair and legal use of music is one of the most easily overlooked: gaining access to accurate music rights data.
Whether they’re focused on generation of sound recordings, compositions, lyrics, or remixes—or all of these—AI-driven companies must navigate the complex landscape of music licensing. Without clear, accurate, and timely rights data, the industry faces several challenges that can hinder innovation and fair compensation.
This is no longer an academic musing or future project. It’s an urgent necessity in the wake of recent deals involving major AI music platforms.
Consent, Credit, and Compensation: The Core Components of Any Successful AI Music Partnership
The music industry’s most urgent concerns about AI include ensuring that artists, composers, and other rights holders have the opportunity to consent to the use of their music, are credited as creators or owners, and are fairly compensated for their work. But before any of those three concerns can be addressed, AI music companies that train on, generate derivative works from, or otherwise manipulate existing music have to be able to accurately identify who holds the rights to that music.
Without access to reliable music rights data, there is a high risk of unauthorized use, failing to assign proper credit, missed royalty payments—and resulting legal disputes and media fallout.
Avoiding Copyright Infringement: Yes, It’s Actually Possible
Copyright laws vary across jurisdictions and music usage is practically universal, so it’s essential for AI music platforms to verify the legal status of any music they analyze or use on a territory-by-territory basis. Having access to granular music rights data allows AI companies to ensure they are using licensed tracks appropriately, respecting ownership rights, and minimizing the risk of legal complications and penalties.
Since rights to sound recordings and songs can be held by multiple parties at the same time, it’s imperative to have clear, up-to-date data about each person or entity that owns a share of a track, and of every composition that track embodies. And these data needs go beyond knowing who controls fractional shares.
It’s common practice for owners of musical compositions to assign control of different right types to several specialist administrators—for example, one who controls reproduction rights, another who controls public performance rights, and a third who handles lyric rights. Platforms that can efficiently identify all of these parties and secure the proper suite of rights from each will have a competitive edge—including with investors (who are notoriously averse to taking unnecessary risks) and music consumers (who are increasingly attuned to the unfair exploitation of creators and artists).
Yes, Ethical AI Training and Development Is Possible – With the Proper Rights Infrastructure
AI models require substantial amounts of music on which to train but using copyrighted material without permission raises real ethical concerns beyond the very high cost of copyright infringement. By accessing proper music rights data, AI companies can source music for training responsibly, ensuring that their models are built on a foundation of legally permissible content.
Insisting on accurate ownership data not only promotes ethical AI development but also builds trust with industry stakeholders, including artists who control other rights these companies need, such as name, image, voice, and likeness (or ‘NIL’) rights. These rights may seem merely “adjacent” to the music itself, yet the ability to acquire them properly, without running afoul of media-savvy artists, is critical to realizing the full economic potential of music.
Whether offering generative AI systems to consumers, building tomorrow’s music production tools for musicians, or selling B2B content and services to mainstream media companies, building ethically and legally is critical to maximizing opportunity for composers, artists, distributors, and AI-driven platforms alike.
To manage these challenges clearly and comprehensively requires a global registry of music rights and related business information comprising all known recordings, the compositions embodied in those recordings, and who controls every share of every right type for every territory.
Music Reports’ Songdex Registry is one such system and already serves as the registry of record for dozens of leading global music services, including streaming platforms, connected fitness providers, social networks, musical instrument learning applications, karaoke services, and more. Those services know that the ability to rapidly license these rights directly from rights owners on a global basis, via a super-efficient click-through licensing system, massively reduces transaction costs, allowing royalties to flow directly to music owners on a quarterly basis.
The Songdex platform obviates the need for commissions that penalize music owners and artists, maximizing returns and minimizing needless fees and friction. Music Reports’ neutral and objective approach to music rights administration strips away drama and uncertainty and focuses on results.
Access to music rights data is not just a legal necessity—it’s a cornerstone of a sustainable and fair music industry.
AI-driven music companies that prioritize transparency, compliance with copyright laws, and fairness to creators and artists will be better positioned to find investors, foster innovation, and expand the market for music. The first step is to engage a robust, state-of-the art rights management infrastructure like Music Reports’ Songdex platform, paving the way for a more harmonious relationship between AI and the music world.
