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Major Shifts In Music Tech: Spotify Lawsuit, AI Crackdowns, and TikTok’s Future
New York, NY – September 26, 2025 – The music industry is witnessing a period of rapid transformation, marked by legal challenges, the rise of artificial intelligence, and evolving geopolitical dynamics.Recent developments include a significant procedural victory for The Mechanical Licensing Collective (MLC) in its dispute with Spotify, aggressive action against fraudulent streams, and advancements in technology designed to protect music copyrights in the age of AI. Simultaneously,a potential deal looms for TikTok’s US operations,signaling a possible restructuring of the popular social media platform.
Spotify Faces Amended Lawsuit Over Streaming Royalties
The Mechanical Licensing Collective secured a favorable ruling from a Federal District Court in New York on Thursday, September 25. The court has permitted The MLC to file an amended complaint in its ongoing lawsuit against Spotify. The core of the dispute revolves around allegations that Spotify underpaid royalties following its decision to categorize its Premium subscription services as bundled offerings. the original complaint, lodged in May, asserts that this bundling practice resulted in diminished payments to rights holders. The MLC has untill October 2, 2025, to submit the revised complaint.
Spotify Eradicates Millions of ‘Spammy’ Tracks and Introduces AI Music Policies
spotify has taken decisive action against fraudulent activity on its platform, removing over 75 million “spammy tracks” in the past year. This cleanup coincides with the rollout of new policies aimed at managing the increasing influx of AI-generated music. The company’s approach centers on a three-pronged strategy – combating AI-enabled fraud, supporting authentic artistic expression utilizing artificial intelligence, and ensuring the integrity of its music catalog. This initiative highlights the growing concerns about the potential for AI to disrupt the music ecosystem.
Did You Know? According to a recent report by MIDiA Research, AI-generated music accounted for an estimated 2% of all music streamed globally in the first half of 2025, a figure expected to rise dramatically in the coming years.
Universal and Sony Music Partner to Combat AI Copyright Theft
Universal Music Group and Sony Music Entertainment are joining forces to tackle the challenge of copyright infringement in AI-generated music.Both companies are collaborating with SoundPatrol,a research lab renowned for its pioneering neural fingerprinting technology. This innovative technology aims to identify instances where AI models have been trained on copyrighted material without proper authorization. The partnership comes amidst escalating legal battles against AI music startups like Udio and Suno, accused of infringing upon existing copyrights.
| Company | Initiative | Partner |
|---|---|---|
| Universal Music Group | AI Copyright Detection | SoundPatrol |
| Sony Music Entertainment | AI Copyright Detection | SoundPatrol |
TikTok Deal Gains Momentum with Trump’s Executive Order
A potential deal to transfer control of TikTok’s US operations to American investors is gaining traction following a recent executive order signed by former President Donald Trump. The order establishes a framework for a “qualified divestiture,” enabling the continuation of TikTok’s services for its 170 million US users under enhanced security protocols. The proposed transaction is estimated to value TikTok’s US assets at approximately $14 billion, though final approval awaits the endorsement of the Chinese government.
Music Labels Accuse Suno of ‘Stream-Ripping’
Escalating tensions between the music industry and AI developers, major record labels have amended their copyright infringement lawsuit against Suno, alleging the company illegally “stream-ripped” copyrighted songs from YouTube to train its AI models. The amended complaint, filed on September 19, 2025, alleges that Suno illicitly downloaded vast quantities of music from YouTube, employing a piracy technique known as “stream ripping”. This move follows a recent $1.5 billion settlement involving Anthropic and authors over similar copyright concerns.
Pro Tip: Understanding the evolving legal landscape surrounding AI-generated content is crucial for both artists and platforms. Staying informed about copyright laws and best practices is essential to navigate this complex terrain.
The Future of Music and AI: A Complex Interplay
The intersection of music and artificial intelligence presents both opportunities and challenges. While AI offers innovative tools for music creation and finding, it also raises complex questions regarding copyright, artist compensation, and the authenticity of artistic expression.The ongoing legal battles and industry collaborations signal a concerted effort to establish a framework that balances innovation with the protection of intellectual property rights. As AI technology continues to advance, expect further shifts in the music landscape and ongoing dialogue between creators, platforms, and policymakers.
Frequently Asked Questions About AI and Music Copyright
- What is ‘stream ripping’ and why is it illegal? Stream ripping is the practice of downloading audio from streaming services like YouTube without authorization, violating copyright laws.
- How are music labels fighting against AI copyright infringement? Music labels are pursuing legal action against AI companies alleged to have used copyrighted material without permission to train their models.
- what is neural fingerprinting technology? Neural fingerprinting is a cutting-edge technology used to identify instances of copyright infringement by analyzing the unique characteristics of audio recordings.
- What is Spotify doing to address AI-generated music? Spotify is implementing new policies to authenticate music and remove fraudulent tracks created by AI.
- What is the potential impact of the TikTok deal on the music industry? A deal allowing US investors to control TikTok’s US operations could have implications for music promotion and revenue streams on the platform.
- What are the challenges of protecting copyrights in the age of AI? The biggest challenge is how to determine if AI-generated compositions are derivative works that infringe upon existing copyrights.
- How is The MLC involved in the Spotify lawsuit? The MLC represents songwriters and publishers and is seeking to ensure fair royalty payments from Spotify.
What are your thoughts on the role of AI in the future of music creation? Share your opinions in the comments below. Do you believe current copyright laws are sufficient to address the challenges posed by AI-generated content?
What are the potential financial implications for songwriters and publishers if the MLC wins its lawsuit against streaming services regarding bundled streams?
Music Business Worldwide Weekly Round-Up: Key Developments from MLC’s ‘bundling’ Lawsuit Revival to Spotify’s Deletion of 75 Million ‘Spammy’ Tracks
MLC’s ‘Bundling’ Lawsuit: A Second Look
the Mechanical Licensing Collective’s (MLC) lawsuit against streaming services over “bundling” – the practice of counting streams from bundled offerings (like family plans) as individual streams for royalty distribution – has been revived. A federal judge recently allowed key parts of the suit to proceed, challenging the current royalty calculation methods. This is a significant development for songwriters and publishers, potentially unlocking considerable additional revenue.
* The Core Issue: The MLC argues that bundled streams dilute royalty payments, as a single subscription fee covers multiple listeners.
* Potential Impact: A favorable ruling for the MLC could force streaming platforms to recalculate royalties, leading to increased payouts to rights holders.
* Key Players: the lawsuit directly impacts Spotify, Apple Music, Amazon music, and other major streaming services.
* Related terms: Digital Music Royalties,Songwriter Compensation,Music Publishing,Streaming Royalty Rates.
Spotify’s Crackdown on Fake Music: 75 Million tracks Removed
Spotify announced the removal of 75 million tracks deemed “spammy” or generated by artificial intelligence (AI) with the primary intention of fraudulently collecting royalties. This aggressive move is part of a broader effort to clean up the platform and ensure fair compensation for legitimate artists.
* Identifying the Problem: Spotify identified a surge in low-quality, AI-generated music uploaded to exploit royalty systems.
* Removal Criteria: Tracks were removed based on factors like lack of genuine artistic creation, minimal listenership, and suspicious upload patterns.
* Impact on Artists: While aimed at fraudulent activity, some legitimate autonomous artists experienced unintended removals, highlighting the challenges of automated detection.
* future Prevention: Spotify is implementing stricter upload policies and improved detection mechanisms to prevent future exploitation.
* Related Terms: Fake Streams, AI Music Generation, Royalty Fraud, Music Distribution, Independent Artists.
YouTube Music Badges: A New Engagement Tool
YouTube Music is rolling out “badges” to reward users for their listening habits. These badges recognise achievements like becoming a top listener for a specific artist. This gamification strategy aims to increase user engagement and platform loyalty.
* Badge Types: Badges are awarded for various activities, including consistent listening, discovering new artists, and becoming a top fan.
* visibility: Users can view their earned badges in the “Badges” tab within the YouTube Music app or on their youtube profile page.
* Engagement Strategy: The badge system encourages users to spend more time on the platform and explore a wider range of music.
* Related Terms: music Streaming Engagement, User Retention, Gamification in Music, YouTube Music Features, music Finding.
The Rise of Direct-to-Fan Platforms & Artist Independence
Several platforms are gaining traction by enabling artists to connect directly with their fans, bypassing traditional intermediaries. This trend empowers artists to retain a larger share of revenue and build stronger relationships with their audience.
* Bandcamp: remains a popular choice for independent artists, offering direct sales of music and merchandise.
* Patreon: Allows fans to support artists through recurring subscriptions in exchange for exclusive content.
* Sound.xyz: Focuses on Web3 music and NFTs, enabling artists to sell unique digital assets to fans.
* Benefits of direct-to-Fan: Increased revenue, greater creative control, and stronger fan connections.
* Related Terms: Independent Music, Artist Revenue Streams, Web3 Music, NFTs in Music, *Music Marketing
