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Universal Music went from suing an AI company to partnering with it. What does it mean for artists?

Last week, artificial intelligence (AI) music company Udio announced an out-of-court settlement with Universal Music Group (UMG) over a lawsuit Udio accused (in addition to one other AI music company called Suno) for copyright infringement.

The lawsuit was filed last 12 months by the Recording Industry Association of America on behalf of UMG and the opposite two “big three” labels, Sony Music and Warner Records.

The lawsuit alleged that Udio – a provider of text-to-audio music generation software – trained its AI on UMG's music catalog.

But beyond the agreement, the 2 have announced a “strategic agreement” to develop a brand new product based solely on the UMG catalog and respecting copyright. At this time we wouldn’t have any details concerning the product.

In any case, the agreement puts each Udio and UMG in strong positions.

The uncertainty stays

Some notable copyright activists have done this announced the result as successful for creators within the fight against “AI theft”. However, since that is a non-public settlement, we have no idea exactly how compensation for artists is calculated.

For experienced observers, the agreement between UMG and Udio mainly reflects the realpolitik of the music company.

In a panel discussion eventually 12 months's SXSW festival in Sydney, Kate Haddock, partner at law firm Banki Haddock Fiora, suggested that many lawsuits between copyright holders and AI corporations would end in private settlements, potentially including equity stakes within the AI ​​corporations.

Such agreements and strategic partnerships will help major labels set the bottom rules for developing AI music ecosystems. And evidently they have gotten increasingly common. Last month, Spotify announced a cope with UMG, Sony and Warner to provide “responsible AI products.” across a spread of applications. Again, we now have little detail about what this can seem like in practice.

Such agreements could allow music giants to learn financially from non-infringing uses of AI while receiving a share of uses that end in a copyright payment (e.g. fan remixes).

How does this affect YouTubers?

According to Drew Silverstein, co-founder and CEO of AI-powered platform Amper Music:

The real headline is: With one in every of the most important rights holders now actively pursuing generative AI music products, smaller players can't afford to remain on the sidelines.

However, any idea of ​​how such a regulation might serve smaller individual creators stays unclear.

Even if AI corporations comply with do business to acquire training data (relatively than serve themselves to it), this isn’t a straightforward model for the way attribution and revenue might be fairly distributed to creators whose work has been used to coach an AI model or who select to make use of their works in generative AI contexts in the longer term.

Several emerging corporations like ProRata claim to be developing “attribution tracing” technologies that may mathematically trace the influence on an AI-generated output back to its sources within the training data. In theory, this might be used as a technique to divide royalties in the identical way that streaming services count the variety of times a song is played.

However, such approaches would give algorithms extraordinary economic power that peculiar stakeholders don’t understand. These algorithms would even be controversial in nature. For example, if an output appeared like Fifties bebop, there is no such thing as a “right way” to make your mind up which of the hundreds of bebop recordings must be named and the way much.

A blunter but practical approach was utilized by Adobe's Firefly image AI suite. Adobe pays artists an “AI Contributor Bonus,” calculated in proportion to the revenue their work has already generated. This is a proxy measurement since it does in a roundabout way capture the worth that a piece brings to the AI ​​system.

When it involves generative AI, it's difficult to search out attribution and revenue solutions that aren't highly arbitrary, obscure, or each.

The result’s systems which might be prone to being easily exploited and unfair. For example, if there’s a payment structure in place, attribution tracking could encourage artists to create music that maximizes the likelihood of attracting attributions.

Artists have already got difficulty understanding complex relationships Rules of success defined by powerful digital platforms. AI appears poised to exacerbate these problems by further “industrializing” the sector.

Music as a public good

There is currently no clear, globally agreed protection for individual artists from having their work used to coach AI models. Even in the event that they can exit in the longer term, generative AI is prone to create major power imbalances.

A model legitimately trained on a catalog as extensive as UMG's – an enormous tranche of the world's most significant music recordings – will give you the chance to create music in many alternative styles and with a wealth of conceivable applications. This could change the music experience.

To understand the danger of being lost, academic research is now reinvigorating the best way music is viewed at the extent of AI produced together common cultural asset, maintained by human labor. copyright isn’t suitable to guard this shared value.

The concept that copyright provides an incentive for creators to provide original works fails due to AI ​​recording industry's licensing agreements. Finding other ways to support original music might be the answer we’d like.

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