GEMA, the German performing rights collection society, has launched a new licensing model aimed at AI providers. This model addresses the use of copyrighted music for AI training and the creation of AI-generated songs. The initiative follows a study commissioned by GEMA and SACEM, conducted by Goldmedia, which predicts that the generative AI music market will exceed $3 billion by 2028.
Representing over 95,000 members and millions of copyright owners globally, GEMA is the first collection society to develop a licensing approach for AI. This model aims to balance the advancement of AI technology with the protection of creative works. It considers both the use of music for training AI models and the generation of new content based on this training.
The licensing model was presented at the Reeperbahn Festival 2024 in Hamburg, where GEMA representatives participated in a panel titled ‘AI meets copyright.’ Speakers included GEMA’s Christina von Gemmingen-Hornberg and Diana Zettl, singer-songwriter Alexa Feser, and Hanna Lukashevich from the Fraunhofer Institute. The discussion covered AI’s impact on creative work, the capabilities of AI models, and the importance of copyright protection in the digital age.
Through this licensing model, GEMA argues that authors should receive ongoing compensation, rather than a one-time payment for the use of their works in AI training. The organization suggests that one-off payments may not fairly compensate creators, given the potential revenue from AI-generated content. GEMA’s model advocates for fair remuneration at a high level, while acknowledging the rapidly changing nature of AI and the music industry.
Christina von Gemmingen-Hornberg of GEMA emphasized the need for concrete outcomes: “We have always been willing to negotiate fair terms with AI companies. However, we’ve now reached a point where we need to secure tangible results for our members. This will have significant implications for the entire industry.”
Singer-songwriter Alexa Feser voiced support for GEMA’s approach, stating, “The human element in music will endure, but we must ensure that musicians are part of the value creation process, not just technology companies.”
The launch of GEMA’s new licensing model comes as the music industry faces challenges posed by AI technology. GEMA’s study with SACEM and Goldmedia revealed that many composers and music rights holders are concerned about AI’s impact on their earnings. The study also found widespread support for compensating rights holders when their music is used to train AI systems. It predicts a potential 27% loss in music creators’ revenues by 2028 if no compensation system is implemented.
With numerous lawsuits filed against AI developers for using copyrighted music without permission, the lack of clear legal guidelines leaves courts uncertain on how to handle such cases. In January, GEMA CEO Dr. Tobias Holzmüller emphasized the need for transparency, control, and fair revenue sharing for authors in the AI-driven music landscape.
GEMA’s licensing model represents a proactive approach to addressing the evolving relationship between AI technology and the music industry.
