Exploration Weekly - Music Copyright Generated $45.5 Billion in 2023 / US Supreme Court Seeks Federal Insight Into Copyright Case Against Cox / Senate Bill Targets AI ‘Black Box’ Problem

This guide was written to give readers an idea of what a promoter is and how they contribute to the live music industry. As an artist live performances are one of the most important aspects of your career. An article from TorrentFreak lists touring and live performances as the highest-earning revenue stream for musicians. This is why working with a skilled and connected promoter can be very beneficial for artists and venue owners.

As an artist, it’s important to understand the types of promoters that you will be working with in the industry. Some promoters are working to promote you and your brand and other promoters are working to promote your live performances and appearances. Both types of promoters can greatly benefit your career so it’s important to know the basic things that they should do and offer you.

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In this newsletter:

• Will Page Says Music Copyright Generated $45.5 Billion in 2023
• US Supreme Court Seeks Federal Insight Into Major Label’s $1BN Copyright Case Against Cox
• Senate Bill Targets AI ‘Black Box’ Problem, Eyes Transparency in Use of Copyrighted Works
• German Court Upholds YouTube-DL Hosting Injunction and Damages Order As Stream-Ripper Crackdown Continues

Music copyright brought in $45.5 billion in 2023, according to Will Page, who has collated industry stats to calculate a figure for the entire sector. Though he says the actual figure is probably higher, because not all the industry reports he relies on capture all the revenue.

The U.S. Supreme Court has asked the federal government to weigh in on a copyright dispute involving a $1 billion verdict awarded to major labels, which accused Cox of failing to prevent its users from illegally downloading music.

Industry leaders back the TRAIN Act, seeking to help artists identify unauthorized use of their copyrighted works in generative AI training models.

Now, the details...

Exploration Weekly - November 29, 2024
Compiled by Ana Berberana

Will Page Says Music Copyright Generated $45.5 Billion in 2023

Global music copyright revenues in 2023 were $45.5 billion, 11% up year-on-year, according to economist Will Page, who has just published his annual study that seeks to capture as many of the rights and revenues of the wider music rights industry as possible. That said, Page admits that the actual value could be higher than that. His study reviews various industry reports, including those published by IFPI, CISAC, IMPF, MiDIA and Music & Copyright. For calculating the total revenues figure, Pages relies on a combination of data from IFPI (recorded music), CISAC (song royalties collected by collecting societies) and Music & Copyright (music publisher direct income), before removing ‘double counting’ that happens by bringing together those figures. However, depending on which of the full set of industry reports you choose to pull your figures from you’ll get a different global total, because each report employs a different methodology, with some including periphery but growing revenue streams that others don’t capture. For example, media consultancy MiDIA’s reports include revenues from the DIY artist and production music sectors not necessarily included in the other reports. Because it captures a wider range of revenue streams, MiDIA - Page notes - “estimates global recorded music revenue in 2023 to be $30.5 billion”, which is 6.6% higher than record industry trade group IFPI in its ‘Global Music Report’. As for music publishing income, MiDIA “puts the figure around $10 billion, a billion more than Music & Copyright”.

US Supreme Court Seeks Federal Insight Into Major Label’s $1BN Copyright Case Against Cox

The US Supreme Court has invited the federal government to provide input on a copyright dispute between major music labels and Cox Communications, one of the US’s largest internet service providers. The dispute stems from a $1 billion jury verdict originally awarded to more than 50 labels owned by Sony Music Entertainment (the lead plaintiff), as well as Universal Music Group and Warner Music Group. The labels accused Cox of not doing enough to prevent its subscribers from illegally downloading and distributing copyrighted music through peer-to-peer networks. On Monday (November 25), the Supreme Court said in a brief statement: “The Solicitor General is invited to file a brief in this case expressing the views of the United States. Bloomberg noted that the timing of the request suggests it will be managed by John Sauer, President-elect Donald Trump’s designated Solicitor General and the federal government’s top courtroom lawyer. In 2019, a federal jury in Alexandria, Virginia found Cox enabled subscribers to copy over 10,000 musical works without authorization. The jury awarded nearly $100,000 per instance of copyright infringement, totaling $1 billion. In February 2024, the verdict was overturned, with the 4th US Circuit Court of Appeals ordering a new trial to be held after concluding that the penalty was not justified. The court then declined to rehear that ruling in March without offering a reason.

Senate Bill Targets AI ‘Black Box’ Problem, Eyes Transparency in Use of Copyrighted Works

Senator Peter Welch (D-Vt.) introduced the Transparency and Responsibility for Artificial Intelligence Networks (TRAIN) Act on Monday in the latest effort to shield songwriters, musicians and other creators from the unauthorized use of their works in training generative AI models. If successful, the legislation would grant copyright holders access to training records, enabling them to verify if their creations were used — a process similar to methods combating internet piracy. “This is simple: if your work is used to train A.I., there should be a way for you, the copyright holder, to determine that it’s been used by a training model, and you should get compensated if it was,” said Welch. “We need to give America’s musicians, artists, and creators a tool to find out when A.I. companies are using their work to train models without artists’ permission.” Creative industry leaders have long voiced concerns about the opaque practices of AI companies regarding the use of copyrighted materials. Many of these startups and firms do not disclose their training methods, leaving creators unable to determine whether their works have been incorporated into AI systems. The TRAIN Act directly addresses this so-called “black box” problem, aiming to introduce transparency and accountability into the AI training process.

German Court Upholds YouTube-DL Hosting Injunction and Damages Order As Stream-Ripper Crackdown Continues

Amid an ongoing industry push to decommission stream rippers, a German appellate court has upheld a ruling against the web-hosting provider behind YouTube-DL. The International Federation of the Phonographic Industry (IFPI) touted this latest ruling, handed down specifically by the Hamburg Appeal Court, in a brief release today. We previously checked in on the legal action, which comes from the IFPI as well as Germany’s Bundesverband Musikindustrie (BVMI), in early April 2023. That’s when the Hamburg Regional Court awarded the plaintiffs damages and, as described by the IFPI, slapped “the individual hosting the stream ripping software” with an injunction requiring him or her “to stop hosting” YouTube-DL. Unsurprisingly, the development didn’t sit right with the individual, whose hosted stream ripper, as its name suggests, allows users to “rip” and then download audio (allegedly including protected music) from YouTube videos. (YouTube-DL had been in the industry’s crosshairs for years before the 2023 ruling, it’s worth noting.) One lengthy appeals process later, however, the appropriate German court has sided with the record-label filing parties, as initially mentioned. In a statement, the IFPI welcomed the decision “dismissing the defendant’s appeal in its entirety,” confirming the aforesaid injunction, and leaving in place the damages order. “The decision is final and The Higher Regional Court of Hamburg has not authorised an appeal,” the IFPI relayed. “The software tool has enabled countless stream ripping services to steal music from legitimate, licensed platforms and take revenues away from artists and rightsholders.

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