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Kobalt announces new AI music licensing deal with ElevenLabs
Kobalt has reached a significant agreement that alters revenue sharing in music publishing.
This new licensing deal could transform music publishing in the age of AI.
Kobalt and ElevenLabs reach groundbreaking music licensing agreement
Kobalt has unveiled a new licensing agreement with ElevenLabs that promises to change the landscape of music publishing. This deal, confirmed today, allows Kobalt to share royalties generated by Eleven Music, an AI music platform, on a 50/50 basis. Positioned as a rival to existing services, this platform will experiment with generative AI while addressing the longstanding royalty disparities in the music industry. Kobalt’s agreement includes a Most Favored Nation clause, meaning if any other rights holder negotiates better terms, Kobalt automatically receives the same deal. This initiative comes as the music sector is grappling with how to adequately license generative AI technology, amidst ongoing legal battles over copyright issues.
Key Takeaways
"Think about what we’re offering [AI] platforms: publishers bring the lyrics and the building blocks of the composition."
This statement reflects the essential role of publishers in music production and their push for fair treatment in licensing agreements.
"Publishing compensated comparably to sound recordings is a significant shift."
The emphasis on equitable compensation could lead to a new balance in revenue distribution within the music industry.
"We can negotiate freely when it comes to gen AI training."
This underscores the optimism surrounding the new capability for music publishers to assert their rights within AI contexts.
"This agreement provides true choice in licensing Generative AI for rightsholders."
Kobalt frames their deal as empowering for artists and publishers, emphasizing choice in the evolving music ecosystem.
The Kobalt and ElevenLabs deal could signal a shift in how music rights are negotiated in the era of AI. By giving music publishers a fairer share of revenue, Kobalt is pushing back against traditional models that favor recorded music. This agreement represents a broader trend where the people creating the lyrics and compositions demand equal treatment alongside labels. If successful, it could inspire other publishers to seek similar deals, potentially leading to a restructuring of the industry's financial dynamics. The introduction of content protection systems also highlights a growing awareness of copyright issues in the rapidly changing digital landscape.
Highlights
- Fair and logical to have parity: Kobalt's deal with ElevenLabs is a game changer.
- This agreement could reshape industry dynamics around generative AI licensing.
- Kobalt gives publishers a voice and fair revenue in AI music.
- A landmark deal that challenges traditional music publishing models.
Potential legal implications in music licensing
The transformation of music licensing practices could provoke backlash from traditional rights holders and lead to new disputes over copyright and royalty distributions.
This innovative approach could redefine artist compensation in the digital age.
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