GEMA, a German performing rights collection society and licensing body, has introduced a licensing model for AI providers, seeking to address the use of copyrighted music in AI training and the creation of AI-generated songs.
The launch follows a study commissioned by GEMA and SACEM, and conducted by consultancy and research group Goldmedia, which projects that the generative AI music market will reach over $3 billion in value by 2028.
GEMA, which represents copyrights for over 95,000 members and over 2 million copyright owners globally, says it is the first collecting society to develop a licensing approach that attempts to balance technological progress with creative work protection. The approach considers both the use of music for AI model training and the generation of AI content based on this training.
The organization presented its licensing model at the Reeperbahn Festival 2024, which ran from September 19 to 21 in Hamburg, Germany. GEMA representatives participated in a panel discussion titled ‘AI meets copyright.’ The panel included Diana Zettl and Christina von Gemmingen-Hornberg from GEMA, singer-songwriter Alexa Feser, and Hanna Lukashevich from the Fraunhofer Institute for Digital Media Technology. They discussed AI’s impact on creative work, the technical possibilities of AI models, and copyright protection in the digital era.
“As GEMA, we have always made it clear that we are prepared to negotiate fair terms of use and remuneration models with the AI companies.”
Christina von Gemmingen-Hornberg, GEMA
Through its new licensing model, GEMA proposes that authors should receive compensation beyond a one-time payment for training data. It suggests that such one-off payments may not sufficiently compensate authors given the potential revenues from AI-generated content. GEMA says its model advocates for “fair remuneration at a high level while keeping in mind that the market and its technical developments can change dramatically and rapidly.”
“As GEMA, we have always made it clear that we are prepared to negotiate fair terms of use and remuneration models with the AI companies. At the same time, however, we have reached a point where we have to achieve concrete results for our members. This has an impact on the entire industry,” said GEMA’s Christina von Gemmingen-Hornberg.
Singer-songwriter Alexa Feser added: “I am convinced that the human element in music will survive. But we must not leave the responsibility to the big technology companies. We must be involved in value creation. It’s good that GEMA is taking up the issue and standing up for our rights. We have to be quick, be cause technological development is always ahead of politics.”
“I am convinced that the human element in music will survive. But we must not leave the responsibility to the big technology companies. We must be involved in value creation.”
Alexa Feser, Singer-Songwriter
The launch of GEMA’s new licensing model comes as the music industry grapples with the implications of AI technology on creative processes and copyright.
GEMA’s survey with SACEM and Goldmedia revealed that composers and music rights holders are worried about the potential impact of AI on their earnings. The survey also found overwhelming support for the idea of compensating rights holders when their music is used to train AI systems. The study predicts a 27% potential shortfall in music creators’ revenues by 2028, if no system of remuneration for human-created inputs is put into place.
Many lawsuits have been filed against AI developers for using copyrighted music without permission to train their AI models. However, there are currently no specific laws or guidelines to help courts decide these cases.
In January, Dr. Tobias Holzmüller, CEO of GEMA, acknowledged “the rapid development” of AI.
“The works created by authors are the basis for this revolution. Nevertheless, from the perspective of many music creators, the risks so far outweigh the opportunities. This can only change if we now shape the overall conditions in such a way that everyone involved can participate appropriately in the success of this development. Authors need transparency and control over the use of their works. But most importantly, they need a fair share of the revenues,” he said following the release of the ‘AI and music’ study earlier this year.
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