It’s the weekly headline roundup!
This week we’re looking at UMG suing DistroKid, the new IFPI streaming fraud initiative, and more.
Universal Music Group Sues DistroKid, Accusing it of ‘Unlawful Pratices’ and ‘Flooding Platforms with AI-Generated Slop’
Universal Music Group is suing the world’s biggest music distributor by volume, DistroKid.
– Tim Ingham, Music Business Worldwide
In its lawsuit, UMG, the world’s largest music rights company, alleges that DistroKid has “engaged in both deceptive trade practices and blatant copyright infringement”.
Key parts of UMG’s suit center on DistroKid’s alleged involvement with AI-made music.
The suit is careful to draw a line, however, noting that UMG’s complaint is “not about the distribution of AI-generated music when clearly disclosed as such,” but about DistroKid allegedly “masquerading as something it is not and benefiting from that false impression.”
AFM Union Battles UMG and Warner Over AI Licensing Payouts
The American Federation of Musicians (AFM) has filed a brief opposing efforts by Universal Music Group (UMG), Warner Records, and Atlantic Recording Corp. to dismiss its federal lawsuit.
– Bruce Houghton, Hypebot
The union alleges the major labels licensed catalog master recordings to generative AI developers Suno and Udio without notifying or compensating session musicians.
Why this lawsuit matters: It establishes a crucial legal precedent for the AI era. When major labels settle copyright suits with AI companies for lucrative licensing deals and equity stakes, they keep 100% of the proceeds. This lawsuit will determine whether legacy labor protections force record labels to share AI training revenues with the human musicians whose performances built those models.
IFPI Launches Initiative to Combat Streaming Fraud
The IFPI, the international trade body that represents the recorded music business, has launched a new initiative through which participants commit to baseline practices to prevent, detect and respond to streaming fraud.
– Kristin Robinson, Billboard
Dubbed the “Streaming Integrity Initiative,” or SII, it has so far been supported by Absolute Label Services, ADA, AWAL, CD Baby, CmdShft, Ditto Music, FUGA, GoDigital, HYBE, IDOL, IMPALA, InnerCat Music Group, Merlin, Redeye, Revelator, RouteNote, Secretly Distribution, Symphonic, Sony Music Group, The Orchard, Too Lost, Universal Music Group, Virgin Music Group and Warner Music Group. Notably, the largest DIY music distributor, Distrokid, has not yet signed on.l.
‘MAIN Event’ Ticketing Bill Passes the House 36-0—But Why is Live Nation Backing the Very Anti-Bot Law the FTC Is Using to Sue It?
The MAIN Event Ticketing Act has unanimously cleared the House Energy and Commerce Committee with a 36-0 vote, having drawn support from secondary ticket industry advocates who also warn Congress about the potential for private ticketing platform practices to become the basis for federal violations.
– Ashley King, Digital Music News
The committee approved the amended HR 2713 for submission to the full House on September 16. The bipartisan legislation is sponsored by Rep. Diana Harshbarger (R-TN), alongside co-lead Rep. Troy Carter (D-LA). So far, a House floor vote has yet to be announced.