Major Developments in Music and AI
The past week saw significant events in the music industry, particularly regarding AI and copyright law. The Trump administration fired Shira Perlmutter, the US Register of Copyrights, shortly after she released a report suggesting that training AI on copyrighted material may exceed fair use.
Meanwhile, SoundCloud faced backlash from artists over changes to its terms of service regarding AI training. CEO Eliah Seton responded by announcing that the company would revise the controversial language.
Other significant changes in the industry include:
- Jeremy Sirota stepping down as CEO of Merlin at the end of 2025
- Bill Ackman resigning from Universal Music Group’s board of directors
- Scholars arguing that treating Kendrick Lamar’s lyrics as factual in Drake’s defamation lawsuit against UMG could be ‘dangerous’
AI and Copyright Controversy
The firing of Shira Perlmutter came after her office released a report on copyright and AI. The balanced report suggested that training AI on copyrighted songs without licensing likely exceeds fair use definitions in the United States.
“Training AI on copyrighted songs without licensing likely exceeds ‘fair use’ definitions in the United States”
This development has significant implications for the music industry and AI development.
Executive Changes
- Jeremy Sirota will step down as CEO of Merlin effective December 31, 2025. The organization has developed a transition plan as they search for his successor.
- Bill Ackman is no longer on the board of Universal Music Group, citing new executive and board obligations.
SoundCloud Revises AI Policy
SoundCloud faced criticism over changes to its terms of service regarding AI training. CEO Eliah Seton acknowledged the ‘confusion’ and confirmed that the company would update the troublesome text in its Terms of Use.
“AI should support artists, not replace them” – Eliah Seton, SoundCloud CEO
Legal Developments
A group of scholars urged the court to dismiss Drake’s defamation case against Universal Music Group over Kendrick Lamar’s song ‘Not Like Us’. They argued that treating rap lyrics as factual threatens freedom of speech and risks a miscarriage of justice.
The scholars warned of ‘the harms that arise when courts treat rap lyrics as confessions or factual representations.’
These developments highlight the complex intersection of music, law, and technology in the current industry landscape.
