The music industry's latest report on AI licensing sparks debate: Should it be bilateral or collective? The IFPI-commissioned study, conducted by Compass Lexecon, highlights the need for fair compensation for content creators when their work is used to train GenAI models. It emphasizes the rightsholders' ability to deny the use of their protected content for training, dismissing arguments for free use as flawed. However, the report's most intriguing proposal is its recommendation for bilateral licensing, where individual rightsholders and AI companies negotiate terms. This approach has been gaining traction, with recent deals involving Suno, Udio, Stability AI, and Klay Vision. Yet, the report also acknowledges the potential benefits of collective licensing, which could be a double-edged sword. It warns of under-remuneration risks and competition threats, favoring bilateral deals for their flexibility. The report invites readers to explore the full study, sparking discussions on the future of AI music licensing.
