GEMA advocates for royalties on AI-generated derivative works with novel licensing model

GEMA Advocates for Royalties on AI-Generated Derivative Works With Novel Licensing Model

Berlin, Germany— A revolutionary move by Germany’s GEMA aims to reshape how authors are compensated for the use of their works in training generative AI models. Introducing a pioneering licensing framework, the Berlin-based collecting society and Performing Rights Organisation (PRO) addressed the inadequacies of one-off payments for authors at the Reeperbahn Festival earlier this month.

GEMA’s new model emerges at a crucial time, coinciding with the implementation of the European Union’s comprehensive AI Act. Among its many provisions, the AI Act mandates that developers of generative models disclose detailed information about the media used to train their systems. This transparency is expected to lay the groundwork for recording and compositional rightsholders to demand payments for the unauthorised use of their intellectual property (IP).

A significant portion of the discussions revolves around the complexities involved in cases where AI is deeply integrated into works performed in public establishments. The current methodology for identifying public plays and compensating authors is comparatively straightforward, relying primarily on direct measurements. In contrast, determining the exact contributions of AI to derivative works introduces a labyrinthine set of challenges.

One of the more pressing ambiguities surrounds how public performances of derivative works, enabled by generative models trained on protected music, will be managed. The lack of a concrete system to register such usages complicates matters further, especially amid ongoing legal debates over the precise boundaries of AI-training copyrights.

Despite these complexities, GEMA asserts its global leadership in developing a licensing approach aimed at finding a balance between technological advancement and the protection of creative output. “Pure remuneration through a buyout, i.e. a one-off lump sum payment for training data, is not nearly sufficient to compensate authors in view of the revenues that can be generated,” stated GEMA. Instead, the organisation proposes a model for fair and high-level remuneration that acknowledges the rapid and dramatic shifts within the market and its technological landscape.

According to GEMA, “authors must be adequately involved in the subsequent generation of AI content based on their creative work.” The organisation believes that a more sustained and fair compensation model is crucial, particularly considering the significant revenues potentially generated from AI-integrated creative works.

The groundwork for this licensing model is indeed formidable, requiring not only the establishment but also the enforcement of comprehensive compliance mechanisms. Digital Music News (DMN) reached out to GEMA for further details and received an overview through a formal release, although additional insights were not provided in time for publishing.

The broader implications of this initiative prompt numerous questions related to the expanding influence of AI in music and other creative industries. Pre-cleared music for use in public spaces is now more accessible than ever, with several companies incorporating AI technologies. However, multiple AI developers claim that their models are trained without the use of protected media, adding another layer of complexity to the discussion.

As AI-driven tracks are poised to achieve mainstream commercial success, the establishment of fair and equitable systems of author compensation remains an unfolding challenge. GEMA’s initiative represents a significant step towards addressing this intricate and evolving issue within the music industry and beyond.

Source: Noah Wire Services