Vivendi announces a deal to sell See Tickets to CTS Eventim, plus comedy AI case may provide template for settling fake vocal disputes

We've covered the music business

each day since 21 Jun 2002

Today's email is edition #5187

Wed 3 Apr 2024

In today's CMU Daily: The music industry has again demanded that AI companies respect the rights of human creators, this time via an open letter signed by more than 200 artists, including Nicki Minaj, Jonas Brothers, Chuck D, Sam Smith, Katy Perry and Zayn Malik. Although echoing previous statements on AI by the music industry, this letter expresses particular concern about digital platforms using AI to "substantially dilute the royalty pools that are paid out to artists"


One Liners: Endeavor, Carlita, Ayushmann Khurrana, Dua Lipa, Opus deals; RA appointments; Spotify’s new threshold now in effect; Vocalist AI beta; AFM deal with studios ratified; TGE’s Spanish Wave; new Killer Mike video; new music from James Vincent McMorrow, Peaches + Romy, and Mike Lindsay + Anna B Savage


Also today: Vivendi to sell See Tickets to CTS Eventim; another former Kanye West employee goes legal; and the George Carlin estate settles a lawsuit over an AI-generated fake comedy special, with the comedian’s daughter saying that the case should serve "as a warning about the dangers posed by AI technologies”

200+ artists sign letter urging tech companies to stop using AI to "devalue the rights of human artists"

More than 200 artists - including Nicki Minaj, Jonas Brothers, Chuck D, Sam Smith, Katy Perry and Zayn Malik - have signed an open letter that calls on technology companies to "cease the use of artificial intelligence to infringe upon and devalue the rights of human artists". 


Although insisting that "when used responsibly, AI has enormous potential to advance human creativity", the letter urges "AI developers, technology companies, platforms and digital music services" to "pledge that they will not develop or deploy AI music-generation technology, content or tools that undermine or replace the human artistry of songwriters and artists or deny us fair compensation for our work". 


It's by no means the first such demand from the music industry, which has been clear about what it sees as the obligations of companies that are developing or employing generative AI. 


The music industry holds the position that in order to legally train a generative AI model with existing music, a company must first get permission. That includes training using sound recordings, songs or any other assets that contain an artist's voice or likeness. Which means deals need to be negotiated with relevant rightsholders, which may include the artists themselves. However, whatever the music industry thinks, this is still a legal grey area. 


This new letter specifically expresses concern about digital platforms that are not only using unlicensed music to train AI models, but which are then using the outputs of those models to create "sounds" and "images" that are "directly aimed at replacing the work of human artists" and which "substantially dilute the royalty pools that are paid out to artists".


Although the letter doesn't make any specific allegations against any specific digital platforms, it does seem to reflect concerns that some user-generated content platforms are maybe developing their own AI tools that generate audio and music that creators can use in their videos instead of commercially-released music. Which means those platforms are less reliant on tracks that need licensing from the music industry. 


When Universal Music pulled all of its music from TikTok earlier this year, it stressed that concerns around AI were part of its dispute with the social media firm, as well as the core disagreement over how much money the major should be paid when its music is used in TikTok videos. 


In a subsequent letter to its songwriters, Universal stated, "While refusing to respond to our concerns about AI depriving songwriters from fair compensation, or provide assurances that they will not train their AI models on your songs, recent media reports reveal 'TikTok … leaders have long wanted to move the app beyond music' [and] 'TikTok has an incentive to push the use of these AI recordings rather than the copyrighted and licensed recordings'. Every indication is that they simply do not value your music". 


The new open letter, which was organised by the Artist Rights Alliance in the US, goes on to say, "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. This assault on human creativity must be stopped. We must protect against the predatory use of AI to steal professional artists’ voices and likenesses, violate creators’ rights, and destroy the music ecosystem".


Artists and songwriters are generally allied with record labels and music publishers when it comes to the obligations of AI companies, insisting that those companies must get consent before utilising existing music, and that they should be fully transparent about what music they have used in any training processes. 


Although, in the UK, the Council Of Music Makers has also called on labels and publishers that might be looking to negotiate licensing deals with AI companies to make similar commitments. So, to secure the consent of artists and songwriters before any music is used in AI training, and to also be fully transparent about what music is being used in the AI domain and on what terms.

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Horizon is CMU's new weekly newsletter - published each Friday - that brings you a hand-picked selection of early-stage career opportunities from across the music industry.


Whether you're looking for your first job in music or you're ready to take a step up, Horizon is here to help you find your dream job faster.


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ONE LINERS

Resident Advisor, Spotify, Mike Lindsay and Anna B Savage + more

DEALS 


Endeavor Group Holdings, which owns talent agency WME, is becoming a private company again, having listed on the New York Stock Exchange in 2021. In a deal led by private equity firm Silver Lake Capital, which already has a 71% voting stake in the business, other shareholders will receive $27.50 in cash for each share, a 9% premium over Monday’s closing price. It’s the latest music related company to take itself private recently, with Sweden’s Linkfire making the move at the end of 2023, and more recently French artist and label services business Believe indicating it will do the same - though that is not yet a done deal. What is interesting about all of these is the relatively short lived nature of their public listings, and the apparent increased private equity interest in music.   


DJ, producer and multi-instrumentalist Carlita has signed to Ninja Tune imprint Counter Records and released new single 'Time'. On the new record deal, Carlita says, “Ninja Tune is such an iconic label for me. I grew up listening to Coldcut, Amon Tobin and Bonobo. I love the diversity of sounds, the crossover and futuristic approach, and I feel so honoured to be part of such an amazing artist roster”.


Warner Music India has signed a global record deal with Bollywood actor and singer Ayushmann Khurrana. Confirming the deal, he says, "I want to take my music to a global audience and I'm confident that with Warner Music India by my side, I will make some significant strides in this realm". 


Radical22, the management company launched by Dua Lipa's father and manager Dugi Lipa, has signed a music publishing admin deal with Warner Chappell. It follows the deal last year that saw Dua Lipa acquire back the rights in her songs from the publishing division of her former management representatives, TaP Music. She says, “It’s been a long road, but I am very happy to finally own my publishing thanks in large part to the dedication of my manager Dugi’s work over the past two years. My music is my life’s work, and it’s important for me to be the person who decides what happens with it".


Opus Music Group has put the portfolio of music rights it owns up for sale, which includes rights in music by Juice WRLD, Rauw Alejandro and Maluma. According to Billboard, advisors at investment firm Raine Group have been sounding out possible buyers, with Opus - which launched in 2021 - seeking around $200 million for its catalogue. 


APPOINTMENTS


Resident Advisor has appointed a new Editor and Deputy Editor, Gabriel Szatan and Rachel Grace Almeida respectively. Carlos Hawthorn has also been promoted to Managing Editor and Nyshka Chandran becomes Futures Editor. Says RA's Chief Creative & Brand Officer Kazim Rashid: “I’m extremely excited to welcome both Gabriel and Rachel to the RA team. I’ve been a fan of both of their work for some years now and had both of them on my mental shortlist back when this process was in its inception. It’s great to see it come full circle".


DIGITAL 


Spotify confirmed that its new royalty payment threshold went into effect on Monday meaning tracks now need to get 1000 streams from a minimum number of users in any one year in order to qualify for any payments. The somewhat controversial change to the streaming service's track allocation process was announced last year. Changes affecting functional audio on the platform - which include each play of such content counting for a fraction of a play - went into effect back in February. 


Vocalist AI has unveiled a public beta version of its platform which, it says, "leverages state-of-the-art algorithms and high-performance GPU processing to transform vocal inputs into world-class singers and rappers". It uses AI models developed with an assortment of performers who earn royalties when their voices are used. Says co-founder Andrew Frampton, “There is a growing sense within the creator economy that the future will belong to those who supplement their songwriting and production with AI tools and the possibilities they bring. We approached Vocalist.ai completely from the perspective of giving professionals a tool that addresses the real challenges they face in the music production landscape". Access the service at vocalist.ai


Members of the American Federation Of Musicians have ratified the newly negotiated agreement with US movie and TV studios which includes new residual payments from the streaming of films and programmes, plus protections around AI. The union announced it had negotiated a new deal with the Alliance Of Motion Picture And Television Producers in February. Says AFM International President Tino Gagliardi, “This agreement is a monumental victory for musicians who have long been under-compensated for their work in the digital age". 


GIGS & FESTIVALS


Spain is the lead country at this year's Great Escape showcase festival in Brighton in May, and the eight Spanish artists set to play under the banner The Spanish Wave have been announced: Depresión Sonora, Eva Ruiz, Lala Hayden, Ona Mafalda, Mavica, Mujeres, Sila Lua and The Gulps. This year's Great Escape takes place from 15-18 May.


RELEASES


Killer Mike has posted a video for 'EXIT 9', the Blxst featuring track from his album 'Michael'. Accompanying what is an "unabashed Atlanta anthem", the video, we are told, "depicts Blxst and Mike breaking bread with the mayor and making the rounds to notable ATL landmarks from the Cascade roller rink to the Blue Flame".


James Vincent McMorrow has posted new single 'Give Up', taken from his new album 'Wide Open, Horses', which will be released on 14 Jun. 


Peaches has only gone and remixed Romy’s 'Did I'. Says Romy, “Peaches is an absolute icon and has inspired me in so many ways over the years. Peaches was one of the first gigs I ever went to and I’ve never forgotten her energy onstage, her lyrics, production and how she continuously pushes boundaries for the better. With this project I wanted to celebrate queer dance music and I couldn’t think of an artist who embodies this more than Peaches, I’m honoured that she has not only remixed 'Did I' but added a verse too!”


Mike Lindsay and Anna B Savage have collaborated on new single 'Table', which will appear on Lindsay's debut solo album 'Supershapes Volume 1' when it is released on 14 Jun.

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Vivendi announces deal to sell See Tickets to Eventim

Vivendi yesterday announced a provisional agreement to sell its ticketing and festivals business to CTS Eventim in a deal which, according to Eventim CEO Klaus-Peter Schulenberg, "supports our internationalisation strategy and will also benefit artists and their managers, as we will be able to offer even more seamless services on a global scale".


Vivendi's ticketing company, See Tickets, will have been of most interest to Eventim when negotiating the purchase. It generated more than 75% of revenues at Vivendi's live music division, which operates as Vivendi Village, and will significantly increase Eventim's presence in the UK market, where See Tickets is the number two ticketing provider. 


It emerged last September that Vivendi, which also used to be the parent company of Universal Music, was planning to sell its interests in live music. As well as See Tickets, Vivendi Village also owns a number of festivals, including UK-based events Love Supreme and Kite. 


Sources at the time said that Vivendi bosses felt that their live music division was unlikely to ever achieve sufficient scale to be able to properly compete with the big players in live entertainment, Live Nation and AEG, and therefore the company should look to exit the sector. 


In a statement yesterday, Vivendi said it has signed a "put option agreement" with Eventim, and that the deal should complete in the coming months "after consultation of the employee representative bodies concerned". 


Hala Bavière, CEO of Vivendi Village, added, "We at Vivendi are convinced that CTS Eventim will be the right company to bring our ticketing and festival activities to new heights, supporting See Tickets to remain a state-of-the-art company in services and technology, while fostering the growth of the festivals and preserving their unique identities and audience".

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Kanye praised Hitler, “attempted to destroy” Donda Academy employee and gave “vulgar lashing” in front of kids, says lawsuit

Another former employee of Kanye West has filed a lawsuit making various allegations relating to his time working for the Yeezy fashion line, Donda Academy and other business ventures run by the rapper. Among other things, West - or Ye - is accused of racial discrimination, making antisemitic statements in school meetings, and violent behaviour in the workplace. 


According to Rolling Stone, Trevor Phillips says that when he tried to push back against Ye's “bigotry", the rapper “responded mercilessly, with incessant harassment, humiliation and attempts to both mentally control and destroy" his employee. “Kanye’s ill-will towards the plaintiff", Phillips' lawsuit claims, "ultimately culminated in a vulgar lashing in front of schoolchildren and their parents. Kanye even threatened Phillips with physical violence". 


Phillips was hired to work for Ye's Yeezy fashion company in November 2022, just as the rapper's business partnership with Adidas was cancelled because of the increasingly controversial statements he was making. In part because of the impact of the collapse of the Adidas partnership, Phillips' role was evolved, resulting in him working for other businesses and projects headed up by Ye, in particular the Donda Academy school in California. 


In his lawsuit, Phillips - who is black - says that Ye “treated the black staff considerably worse than white employees”. Ye also repeated the antisemitic statements he was making in public in the workplace, including in front of students at the Academy. 


There were other occasions when he spoke inappropriately to students, including allegedly telling two children that he wanted them to “shave their heads" and that "he intended to put a jail at the school – and that they could be locked in cages".


Away from the school, during one bizarre meeting at a hotel in Malibu, Ye allegedly spoke about Hitler’s greatness, said that the Holocaust was fake, and stated that “gay people are not true Christians". He also allegedly talked about his sex life to Phillips while miming masturbation.


Working for Ye became ever more stressful as Phillips' nine month stint with the rapper progressed. During one incident in May 2023, Ye allegedly “physically threatened” Phillips, repeatedly saying he was going to “punch him in the face”, before having a sudden change of mood and declaring “I’m gonna give you one more chance!" However, in August, Ye fired Phillips stating he was “not on the level". 


Phillips’ lawsuit is the latest filed against Ye by a former employee. Last year Isaiah Meadows, who had been an assistant principal at the Donda Academy, sued for breach of contract and accused Ye of violating California’s employment regulations. Among other things, Meadows outlined allegations of safety concerns at the school, adding that at one point there was no glass in the windows, no electricity and no hot water.

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Setlist Podcast: Make big shows fund grassroots music, politicians told

In this week's Setlist Podcast: Chris Cooke and Andy Malt discuss UK Parliament's Culture, Media & Sport Select Committee's hearing on the grassroots live music crisis, the Nirvana logo legal battle's return to court, and more. 


🎧 Click here to listen - or search for 'Setlist Podcast'

George Carlin's daughter calls for "appropriate safeguards" after settling lawsuit over AI-generated fake comedy special

The daughter of late comedian George Carlin has said that his estate's now settled legal battle over an AI-generated fake comedy special, which was put online in January, should serve "as a warning about the dangers posed by AI technologies and the need for appropriate safeguards not just for artists and creatives, but every human on earth". 


Kelly Carlin issued her statement as lawyers confirmed with the courts in California that a settlement had been reached with the producers of the Dudesy podcast, which created and published the AI-generated comedy routine. The concerns expressed by the Carlin estate over the use of AI to imitate his voice echoed concerns raised by many in the music community. 


The settlement, the estate's lawyer Joshua Schiller told reporters, constitutes “a blueprint for resolving similar disputes going forward where an artist or public figure has their rights infringed by AI technology. Our goal was to resolve this case expeditiously and have the offending videos removed from the internet so that we could preserve Mr Carlin’s legacy and shine a light on the reputational and intellectual property threat caused by this emerging technology”.


At the beginning of the fake comedy special, which was called 'George Carlin: I'm Glad I'm Dead', a voiceover announced that it was an "AI engine" which had listened to 50 years of material from Carlin and then sought to "imitate his voice, cadence and attitude as well as the subject matter I think would have interested him today”.


That statement basically admitted that the team behind Dudesy had trained their AI tool with Carlin's content without permission, which - the estate would argue - constituted copyright infringement. Though the AI-generated comedy act also exploited Carlin's voice and, the estate argued, potentially damaged his reputation. 


When the estate went legal in late January, it stated, "In addition to the immediate fact of infringement, defendants' AI-generated 'George Carlin Special' may also deter younger audiences, who are unfamiliar with George Carlin, from engaging with his real work that is his legacy. Defendants must be held accountable for adding new, fake content to the canon of work associated with Carlin without his permission (or that of his estate)". 


Many of the AI companies that have been accused of copyright infringement for using existing works as training material without licence have argued that they don't need a licence, because using copyright protected content in that way is 'fair use' under US law. 


However, the team behind Dudesy didn’t issue any ‘fair use’ statements. Instead, once the estate’s lawsuit was filed, they quickly removed the fake comedy special and all mentions of it on social media, which presumably made negotiating a settlement easier.  


Which is something Kelly Carlin also noted in her statement, adding, "I am pleased that this matter was resolved quickly and amicably, and I am grateful that the defendants acted responsibly by swiftly removing the video they made". 


However, with legal uncertainties remaining about the copyright obligations of AI companies and the exact role of publicity rights in helping people protect use of their voice or likeness by AI, this could have ended up as a long drawn out legal battle. 


There are proposals in US Congress to pass a new publicity right that would provide clear protections for performers - and people more generally - when it comes to stopping the exploitation of their voice or likeness by generative AI. Presumably Kelly Carlin and her late father's estate can be counted as supporters of those proposals.

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