The EU's AI Act And Its Tangible Impact On Music Rights

Consequences

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Heavy hitters in the industry, like IFPI and GESAC, are raising red flags about what they call "AI laundering," where AI trains up on tracks without getting a thumbs-up from the original creators. They want AI developers to come clean on the tracks they use, making sure all that info is out there—crystal clear—for rights holders to protect their jams and enforce their copyrights. It's a move to keep the beats fair and the credits rolling where they're due. However, it's important to note that the Act requires disclosure but does not outright ban the use of copyrighted materials for training.This is in contrast to the recent rulings in the U.S. where several cases tried to come for the big tech beats and got served—cases chucked out the window like last year's mixtapes. Is it possible for the EU Act to influence America and the rest of the world? What happens when Tech companies roll out "AI laundered" models created in the U.S., and they get used in the EU?

Framework

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The Act separates AI into four tiers based on risk:

• Different levels of scrutiny for each type of AI application
• Prohibited, high-risk, limited-risk, and minimal-risk.

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The categorization of a specific AI application, such as a generative audio model trained on copyrighted songs, would depend on the potential risk it poses to human health, safety, and fundamental rights.However, the Act does not explicitly categorize music or generative audio models into risk categories. Categorization depends on the specific use case and associated risks. For example, if a generative audio model trained on copyrighted songs infringes copyright laws, it could be classified as a high-risk vibe due to its impact on fundamental rights.EU's AI Act includes provisions for administrative fines in cases of non-compliance. If companies start steppin' outta line, they're facing fines up to a wild 35 mil EUR or 7% of their global yearly turnover, depending on both the infringement and size of the company. And for those hustling SMEs? Up to 3% could be their ticket.

Transparency

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The Act also proposes that AI-generated content should be clearly labeled, and tech companies should ensure that their systems are designed in a way that prevents them from infringing on copyright lawsHere's the kicker: AI companies now have to check themselves before deciding to train their models on copy-written material without permission. By putting their cards on the table about their training data, it helps music creators figure out if their work's being used without permission in AI tunes.

Conclusion

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Alright, let's wrap this up

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The EU’s throwing down the gauntlet with its AI Act, with echoes they hope are going to be felt around the world in the music biz. The Act is perceived as a progressive move that aligns with the music industry's ethos of rights protection in the face of digital transformation. As this thing gets ready, we'll be keeping tabs on how it's remixing AI regulations and innovation.

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