Record Labels Take Legal Action Against AI Music Startups
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The Impact of Copyright Lawsuits on AI Music
On June 24, the Recording Industry Association of America (RIAA) made headlines by announcing a lawsuit involving the three largest record labels: Sony Music, Universal Music, and Warner Records. These companies are taking legal action against two emerging AI startups, Suno and Udio, alleging that they utilized copyrighted audio without obtaining the necessary permissions to train their AI systems.
The legal proceedings against Suno are based in Massachusetts, while Udio is facing charges in New York. The record labels are seeking three main outcomes from the court:
- A formal ruling that both Suno and Udio have violated copyright regulations.
- An injunction preventing them from continuing such practices.
- Financial restitution for the infringement, amounting to $150,000 for each piece of unauthorized content.
RIAA's CEO, Mitch Glazier, argues that AI companies like Suno and Udio are in the wrong for profiting from artists' work without consent. He believes that this practice stifles genuine AI innovation and advocates for enhanced collaboration between the music industry and responsible AI developers. These collaborations aim to create AI tools that prioritize human creativity.
In response, Udio claims they are not attempting to replicate content in their training dataset. They employ filters specifically designed to prevent the inclusion of copyrighted material or the voices of artists.
The outcome of this case is pivotal. If the court determines that the AI companies’ actions constitute fair use, it could set a precedent that allows AI music firms to operate without seeking consent from record labels. Conversely, if the ruling goes against them, these companies will have to navigate partnerships with record labels moving forward.
If deemed not fair use, the court will decide on the financial penalties, which will vary based on factors such as the popularity of the songs involved, the extent of their use, and whether the AI firms intended to infringe on copyright.
AI technology can produce various types of content, including text, visuals, audio, and video. Both Suno and Udio focus on generating music from textual prompts, functioning similarly to ChatGPT but in the realm of music.
Suno was founded in 2022 in Cambridge, Massachusetts, launching their AI product in December 2023. By May 2024, they had secured $125 million in funding, reportedly valuing the company at $500 million. Udio, established in December 2023 by former researchers from Google DeepMind, operates out of New York and released a free test version in April 2024, raising $10 million in the process.
Both companies provide users with the ability to create songs at no cost, alongside paid subscription options.
Why Are Record Labels Challenging Suno and Udio?
The lawsuit highlights specific instances that raised concerns. For instance, when users input "1950s rock and roll, Jerry Lee Lewis, Sun Studio" into Suno, the AI produced a track titled "You Shake My Nerves and You Rattle My Br," which bears a striking resemblance to Lewis's classic "Great Balls of Fire" from 1961. Similarly, for Udio, a prompt including "a 1983 song by an American singer and dancer, electronic, R&B, pop-rock, post-disco, funk" along with lyrics from Michael Jackson's "Billie Jean" led to the creation of a song called "Midnight Denial," which echoed the original.
The record labels argue that these parallels indicate Suno and Udio utilized copyrighted music to train their models, as such close similarities would be implausible otherwise. They assert that the generated AI songs themselves are not necessarily illegal, but the evidence suggests that copyrighted music was indeed included in the training datasets.
Did Suno and Udio Anticipate Legal Complications?
In an April statement, Suno's CEO Mitch Schulman emphasized the significance of their training data, noting its confidentiality. Schulman maintained that their methods are lawful and standard within the industry.
Udio's CEO David Ding stated that they rely on publicly available data from the internet, striving to incorporate a diverse range of musical styles into their models.
The lawsuit also references an individual named Rodriguez, who has offered to cover Suno's legal expenses, believing his investment in the company will yield returns despite potential repercussions for copyright owners.
Copyright Infringement Versus Fair Use
The ongoing lawsuits against Suno and Udio have thrust the issue of copyright infringement into the spotlight. These claims mark a significant legal development for AI firms, transitioning from previous cases focused on news articles and images to music data.
In December 2023, The New York Times initiated legal action against Microsoft and OpenAI, alleging that millions of their articles were utilized to train AI chatbots such as Microsoft Copilot and ChatGPT, which now pose competition to the newspaper as news sources. The New York Times is seeking billions in damages and the destruction of any AI models trained on their content.
The lawsuits against Suno argue that the company could not have raised $125 million or charged users up to $24 per month without leveraging copyrighted music. Similarly, Udio faces allegations claiming it could not have attracted significant investments or charged up to $30 a month without relying on copyrighted materials.
Both lawsuits contend that Suno and Udio cannot invoke "fair use" as a defense against copyright infringement. "Fair use" permits limited use of copyrighted material without explicit permission, primarily to foster human expression. However, the music produced by Suno and Udio is generated by machines rather than human creativity.
Fair use is a critical component of copyright law, allowing for specific uses of copyrighted works without the need for permission or payment. It is particularly relevant when obtaining permission would be prohibitively challenging or expensive, such as when millions of works are involved or when numerous copyright holders exist.
Thus, if AI training necessitates a vast number of works and involves multiple copyright owners, it may be considered "fair use," as securing consent for each piece of content could be unfeasible.
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