Lipstick-shifters OFRA sued by Sony over social media infringement; Kobalt's going shopping (but not for lipstick); Siri will play you the hits - but not at a discount.

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Today's email is edition #5089

Thu 2 Nov 2023

Fair use, not infringement – say big-AI in Copyright Office submissions

Submissions to the US Copyright Office’s AI review have been published, with tech companies unsurprisingly insisting that training generative AI models with existing content is fair use and therefore can be done without the permission of copyright owners.

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Erased Tapes Records // Label & Production Manager (London)

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ICE Licensing // DSP Audit and Assurance Manager (London)

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Today's music business news

TOP STORY

ONE LINERS

PUBLISHING

APPROVED

DIGITAL

LEGAL

DIGITAL

LEGAL

AND FINALLY

AI companies: copyright, schmopyright – it’s all fair use

Foy Vance and (famous) friends, JLS, Nick Bradley + more

Kobalt’s off shopping with $700 million from Morgan Stanley

Sheherazaad

“Hey Siri! Stop the music” - Apple scraps Voice Plan

Sony sues OFRA Cosmetics over social media music use

Tidal helps artists find new collaborators

Fortnite dance lawsuit revived

We’d use AI - but not talk about using it, say musicians

TOP STORY

Tech companies insist training AI models with existing content is fair use in Copyright Office submissions

The deadline for making submissions to the US Copyright Office's consultation on all things AI was earlier this week and those submissions have now been made public. Unsurprisingly, while copyright owners talk a lot about “consent” in their submissions, the tech companies talk a lot about “fair use”.


"We believe”, writes Stability AI, “that training AI models is an acceptable, transformative and socially beneficial use of existing content that is protected by the fair use doctrine and furthers the objectives of copyright law, including to ‘promote the progress of science and useful arts’”.


Generative AI models pose a number of copyright questions. The big one is whether technology companies training AI models with existing content need to get permission from whoever owns the copyright in that content. The copyright industries, including the music industry, say yes, consent must be sought. But many AI companies reckon not.


That is based on exceptions that exist in many copyright systems, which are scenarios where copyright-protected works can be used without licence.


 Though, under US law, we are talking about the wider and more ambiguous concept of fair use. We already knew AI firms were claiming fair use covers the training of their models, but the new submissions with the Copyright Office sets that out in much clearer terms.


Echoing the comments of Stability, OpenAI says in its submission that it "believes that the training of AI models qualifies as a fair use, falling squarely in line with established precedents recognising that the use of copyrighted materials by technology innovators in transformative ways is entirely consistent with copyright law".


And Google states that "the doctrine of fair use provides that copying for a new and different purpose is permitted without authorisation where - as with training AI systems - the secondary use is transformative and does not substitute for the copyrighted work".


Interestingly, Stability does concede that "the improper use of a person's physical or voice likeness can be problematic if it wrongfully implies a person’s endorsement of, affiliation with, or promotion of a work or idea. The improper use of personal likeness should be governed by clear rules that specify impermissible use".


The music industry has also been calling for stronger protection in this domain in the context of AI. In the US that mainly means putting in place, at a country-wide federal level, some kind of publicity right similar to that which already exists in some US states.


However, Google expresses concerns about that proposal too. It acknowledges creator concerns, but says: "Congress should be extremely cautious before enacting a federal right of publicity or anti-impersonation law ... at their core, right of publicity laws restrict speech rights and can be justified only when they are narrowly tailored to serve compelling state interests".


Submissions from the music industry present strong counterarguments regarding any reliance on fair use and any proposed restriction of publicity rights. With both sides’ positions now clearly set out, it will be interesting to see how lawmakers in the US and elsewhere respond.

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ONE LINERS

Foy Vance and (famous) friends, JLS, Nick Bradley + more

DEALS


Budde Music and Karma Songs have extended their deal with songwriter Nick Bradley. He has written for artists including James Blunt, You Me At Six, Måneskin and Flux Pavilion. “Nick is one of a kind”, says Florian Müller, Senior A&R Manager at Budde Music. “It is absolutely fascinating to work with such a talented, kind and true-hearted musician. I’m massively amazed by Nick’s conceptual way of bringing strong melodies and meaningful lyrics to the songs”.


CTM Outlander has announced a new publishing deal with songwriter and producer Ross Copperman, in partnership with SMACKSongs. "I am profoundly grateful for the opportunity to work alongside remarkable individuals like [those at] CTM and SMACK in my new team”, says Copperman. “CTM's visionary leadership has already brought us exciting opportunities beyond country, expanding our horizons. I've always held immense respect for SMACK, and I eagerly anticipate the promising collaborations and accomplishments that lie ahead”.


APPOINTMENTS


Sony Music Publishing has appointed Laura Mendoza as the new Managing Director of its Columbia office. “I am delighted to join the number one music publisher in the world and in my region”, she says. “It is an honour to work alongside so many talented professionals across the company. Both the challenge and the opportunity of developing the careers of such a fantastic roster will allow me to contribute to a better industry and to the growth of SMP songwriters globally”.


RELEASES


Foy Vance has announced a new version of his song ‘Guiding Light’ to mark its tenth anniversary. The original featured Ed Sheeran, who is back on the new recording, alongside Elton John and Keith Urban. Quite the guest list. The new track will be out on 16 Nov and you can pre-save it here.


Noel Gallagher’s High Flying Birds have released new single ‘We’re Gonna Get There In The End’. “I wrote this in one night during the pandemic”, says Gallagher. “I wrote it and put the demo out. I wanted something positive and uplifting - just a real, uplifting tune. As an artist, the time during lockdown gave you something to focus on. But it didn’t make that time any easier”.


Cat Burns has released new single ‘Know That You’re Not Alone’. The song is, she says, “for anyone feeling lost and confused in their life, that they aren’t the only one feeling this way. It’s good to lean on people around you to take the weight off the feeling”.


Allie X has released new single ‘Black Eye’.


Divorce have released new single ‘Eat My Words’. Their new EP 'Heady Metal’ is out on 17 Nov.


GIGS & TOURS


JLS have announced tour dates around the UK next summer. “We love touring in the summer, especially as we get to meet fans in parts of the country that don’t usually host us in the arenas”, says the band’s JB Gill. ”It’s been a while too - another UK summer road trip with your boys?! Dare you to name anything more exciting than that!” Remembering you bought biscuits and then forgot about them in your pocket? Anyway, tickets are on sale Friday.


Blossoms have announced that they will play Wythenshawe Park in Manchester on 25 Aug next year. “Headlining our biggest show yet at Wythenshawe Park is going to be THE moment of our career so far for us”, says the band’s Tom Ogden. “It makes me think of me and Joe going to watch Oasis and The Stone Roses at Heaton Park back when we were teenagers and how important these big summer Manchester shows are to people. It made us want to be in a band, affected what we wore and changed our lives forever”. Tickets go on general sale on 10 Nov.


Shelf Lives have announced that they will head out on their very first UK headline tour in February. You can also catch them on tour with Sløtface later this month.

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LABELS & PUBLISHERS

Kobalt announces $700 million partnership with Morgan Stanley to buy up more music rights

Kobalt will be splashing the cash on music rights once again via a new partnership with investment funds managed by Morgan Stanley Tactical Value. A neat $700 million is on the table to buy up song catalogues over the next few years, with all the rights acquired then set to be managed by the core Kobalt business.


“Kobalt is a pioneer in investing in music, increasing the value of copyrights and creating music as a viable asset class", says Kobalt CEO Laurent Hubert in a statement announcing the new partnership. “Morgan Stanley Tactical Value's trust in Kobalt is a testament to our platform and leadership in the music industry. We are proud to form this unique partnership".


The MD of Morgan Stanley Tactical Value, Cameron Smalls, adds that the investment outfit "has profound respect for songwriters and the immense value of their art. We are THRILLED to partner with the leading creator-first publisher that is a pioneer in maximising royalty collections for songwriters and rightsholders".


"Together with Kobalt’s infrastructure and deep commitment to bettering the music industry", he goes on, "we are excited about our partnership and the opportunities ahead".


Despite the recent wobbles at the Hipgnosis Songs Fund, there remains plenty of interest within investment circles in music rights, including among investors in the publicly-listed Hipgnosis fund.


Kobalt previously capitalised on that interest via its Kobalt Capital business, which set up, advised and subsequently sold two music rights owning funds.


One of those funds was actually sold to Hipgnosis, which is now looking to sell on 20,000 "non-core songs" that came with that deal. An FT report last month suggested that it might be Kobalt that actually buys those rights, though that was before the vote by shareholders last week which has forced a "re-set" within the Hipgnosis Songs Fund.

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APPROVED: SHEHERAZAAD

Newly signed to Erased Tapes, Sheherazaad blends contemporary Western folk with elements of South Asian music to create atmospheric soundscapes. Her lyrics, meanwhile, modernise traditional Hindi-Urdu poetic tropes.


Her debut single ‘Mashoor’ sees her juxtaposing the glamour and discomfort surrounding the experience of fame. It also tackles the inherent narcissism in the way some people, institutions and countries present themselves.


The name Sheherazaad is taken from a character in the Middle Eastern collection of folktales ‘The One Thousand And One Nights’. She explains: “She has been a favourite and beloved character of mine since childhood for her ferocious storytelling ability that saves lives”.


“Also”, she goes on, “in Hindi and Urdu, Sheherazaad translates to ‘Free City’. I love the idea of a person, especially a woman, being a kind of ‘city’ entity in and of themselves. In the South Asian context, this idea of ‘sheher’ - city - is more visceral with metropolises historically being centres for innovation, forward-thinking, and more social mobility for women specifically”.


Watch the video for ‘Mashoor’ here.

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DIGITAL

Apple Music discontinues its Siri-centric Voice Plan

Apple Music has discontinued its Voice Plan, which gave access to the streaming service exclusively via its Siri voice assistant.


There have been various attempts over the years to launch mid-price streaming subscription packages, the aim being to hook in consumers who like to stream music but who won’t pay $10.99 a month for the privilege. Mid-price options either have a restricted catalogue or restricted functionality to distinguish them from the full premium packages.


Launched in 2021, Apple Music’s Voice Plan offered full access to the streaming service and all of its features for $4.99 a month. The snag was that it could only be controlled via Siri.


But no more. In a post on its support pages, Apple now states that "beginning in November, Apple will discontinue the Apple Music Voice Plan".


Why? Well, because "we are focused on delivering the best, most robust music experience possible for our customers, with features like immersive Spatial Audio, Apple Music Sing with real-time lyrics, intuitive browse and discovery features, and so much more". Oh, of course!


As Apple also notes, "all  Apple Music plans already work seamlessly with Siri and we will continue to optimise this experience". So the option to access music via Siri is still very much available, but the option to access music half price is well and truly gone.


Another possible reason for the discontinuation of the service is Apple’s plans in AI, as it scrabbles to catch up with rivals in this field. The company is currently investing billions in developing its own AI technologies, which are expected to be used for services such as Siri and Apple Music.

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LEGAL

Sony sues cosmetics brand over unlicensed use of music in social media posts

Sony Music has sued cosmetics brand OFRA, accusing the company of using music in its social media posts without securing the necessary sync licences.


"Defendants built OFRA Cosmetics into one of the most successful and influential beauty brands on social media", says the lawsuit. However, it “achieved its success through blatant, wilful and repeated copyright infringement of the sound recordings and musical compositions of various content owners, including hundreds of plaintiffs’ popular and valuable sound recordings".


Although social media platforms like Instagram and TikTok have licensing deals with the music industry, those licences only cover user-generated content.


Brands posting videos that feature commercially released music need to secure sync licences from record companies and music publishers. That obligation is pretty straightforward and OFRA Cosmetics is not the first company to be sued on this point.


Influencers who are paid by brands to feature products in their videos are also not covered by the platform licences. However, there has been some ambiguity in past lawsuits as to whether the brand itself can be held liable for any unlicensed music that is used in those videos.


Although, in this lawsuit, Sony states that OFRA Cosmetics re-posted influencer-made content onto its own channels, which would likely make it easier to argue that it should also be held liable for that content.


"Sony Music informed the defendants of their infringing use of Sony Music’s copyrighted material through a letter sent to OFRA Cosmetics on 12 Sep 2022", the lawsuit goes on. "The defendants have refused to meaningfully engage in any discussions with Sony Music regarding the infringing conduct".


"Not only has OFRA Cosmetics failed to take down infringing content after Sony Music’s demand", it adds, "it has also re-posted new infringing content, long after learning of Sony’s claims".


The major label wants the court to confirm that OFRA Cosmetics has been wilfully infringing its copyrights and to award it statutory damages. If awarded for each of the 329 videos identified as infringing by Sony, the damages bill could end up being nearly $50 million. Fun times.

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DIGITAL

Tidal launches new tool for finding musical collaborators

Tidal has launched Tidal Collabs, a new service for artists that helps them find and connect with possible collaborators. It sits within Tidal Artist Home, the platform for artists launched by the streaming service earlier this year.


Says Tidal's Global Head Of Product Agustina Sacerdote: “We know from speaking with thousands of artists that they are looking for ways to evolve their artistry and grow their audience. Collaborations are a powerful, organic way to do this”.


“We built Tidal Collabs to take the stress and inefficiency out of the process of finding great collaborators”, she goes on. “We leverage our data and editorial expertise to recommend high quality collaborators in an environment that is tailored and safe”.


To mark the launch of the new service, Tidal has teamed up with Jermaine Dupri for a Collabs Spotlight contest. Artists who are matched via Collabs in the US can enter a competition to win studio time and mentorship with Dupri, as well as marketing support for a collaborative track.


Says Dupri: “Finding artists and producers to collaborate with isn’t easy, so Tidal Collabs is a gamechanger. A great collab brings different fan groups together to connect over something fresh".

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LEGAL

Appeals court revives copyright case over Fortnite emote

A copyright lawsuit against Epic Games in relation to a Fortnite emote has been revived after appeal judges concluded that a lower court was wrong to dismiss the case on the basis that dance moves allegedly copied by the game were too generic.


Choreographer Kyle Hanagami sued Epic in the US last year, claiming that a dance sequence he created for Charlie Puth’s ‘How Long’ video had been ripped off by Fortnite for one of its emotes, which gamers obtain in order to allow their in-game avatars to move in a certain way.


It's not the first time Fortnite has been accused of infringing the copyright in a piece of choreography through the movements featured in one of its emotes, though previous legal claims have generally failed. Hanagami's case did seem stronger, but was nevertheless dismissed because the poses used in the offending emote were too few and too generic.


But, the Ninth Circuit Appeals Court reckons, things are a little more complicated than that. And not just because the disputed emote here is called It's Complicated.


"While it is true that, like other forms of copyrightable material such as music, choreography is composed of various elements that are unprotectable when viewed in isolation", they write in their new ruling, "what is protectable is the choreographer’s selection and arrangement of the work’s otherwise unprotectable elements".


"'Poses' are not the only relevant element", they add, "and a choreographic work also may include body position, body shape, body actions, transitions, use of space, timing, pauses, energy, canon, motif, contrast and repetition".


The judges then conclude: "Hanagami plausibly alleged that the creative choices he made in selecting and arranging elements of the choreography - the movement of the limbs, movement of the hands and fingers, head and shoulder movement, and tempo - were substantially similar to the choices Epic made in creating the emote".


To that end, the judges confirm they have "reversed the district court’s dismissal of an action under the Copyright Act and remanded for further proceedings on claims of direct and contributory infringement of a choreographic work".

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AND FINALLY

Musicians are shy about admitting AI use, survey finds

AI is coming. Let’s face it, AI is here. And it’s increasingly going to become a part of the music-making process as time goes on. Will we know when it’s being used and how much? Hell the flip no. Not according to a new survey, which finds that more than half of artists plan to stay tight-lipped about it.


Music studio network Pirate asked 1000 musicians about their current and planned use of AI in the making of their music. Of them, 25% said that they had already experimented with AI tools, while 46% said they would consider it in the future. But only 48% said that they would admit to it.


The main reason given for hiding the use of AI tools, cited by 53% of respondents, was concerns about how employing such technology would be perceived by listeners.


"Understandably, artists are hesitant about adopting AI in the studio, and also hesitant about broadcasting their use of this controversial new technology”, says Pirate CEO David Borrie.


“It’s useful to look back at the introduction of tools like autotune, which faced criticism in their early days, but eventually found their place in the music industry”, he goes on. “AI's journey toward becoming a standard tool in music creation may follow a similar path, as artists and audiences alike adapt to this innovation”.


Despite concerns of a perceived loss of authenticity, the main reasons for choosing to use AI technology were ‘curiosity’, ‘enhanced creativity’ and ‘efficiency’. It was also during the songwriting process that most saw the benefit in using such tools.


See the full results of the survey here.

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