ECSA Voices Concerns Over Major Label AI Deals

The European Composer and Songwriter Alliance (ECSA) has expressed concerns over the lack of transparency in the deals between the major labels and AI platforms Udio, Suno and KLAY. It has also called on the majors to “properly value” the works of composers and songwriters.

Cautionary tale:

• In its statement, ECSA says Universal Music Group’s and Warner Music Group’s recently announced licensing agreements with Udio and Suno – “which appear to cover both rights over the recording as well as the song rights” – present “a real risk that major labels will replicate the licensing model of streaming in AI music services.”

• Doing so, it says, will undervalue song rights “while leveraging [the majors’] dominant position in both the recording and publishing markets to unilaterally impose unfavourable terms for the music authors we represent.”

• ECSA claims a repeat of the music streaming model, “whereby major record labels entered into early agreements with streaming platforms to secure favourable terms for their catalogues, including through ownership stakes,” will be disastrous.

Transparency:

• ECSA says any licensing deals “should involve parity between publishing and master rights.”

• They also implore Universal Music Group, Warner Music Group and Sony Music Group to provide transparency over the licensing terms they’ve agreed to on behalf of the music authors whose rights they represent, and to ensure those authors receive their fair share.

• ECSA also called on European policymakers and competition authorities to consider “the competitive dimension of these deals and their consequences for the European music market and cultural diversity.”