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Sweden Introduces World’s First AI Music Licence to Protect Songwriters

Sweden’s music rights organisation STIM has launched a new licence that allows AI companies to legally train on copyrighted songs while ensuring that songwriters, composers, and publishers receive royalties. The move addresses growing disputes between creators and tech firms over the unauthorized use of copyrighted works in AI training.

STIM, which represents over 100,000 music creators, said the licence is designed to strike a balance between technological innovation and fair compensation.

How the licence works

  • AI firms can train their systems on copyrighted songs under the licence.

  • Creators receive royalties for the use of their works.

  • The licence includes mandatory tracking technology to monitor AI-generated outputs and ensure transparent payments.

Why it matters

  • The International Confederation of Societies of Authors and Composers (CISAC) warns that generative AI could reduce music creators’ income by up to 24% by 2028.

  • CISAC also projects that AI-generated music outputs could reach $17 billion annually by 2028, underscoring the economic stakes.

  • STIM’s acting CEO Lina Heyman said:

    “We show that it is possible to embrace disruption without undermining human creativity. This is not just a commercial initiative but a blueprint for fair compensation and legal certainty for AI firms.”

First adopter: Songfox

Stockholm-based startup Songfox is the first to operate under the new licence. The company allows users to create AI-generated songs and covers legally, with royalties flowing back to original creators.

Sweden’s leadership in digital music

Sweden has a history of setting industry standards in the digital music space, having previously played a central role in shaping platforms like Spotify and TikTok. The AI music licence could similarly become a global benchmark for balancing innovation and rights protection.

Spotify Pays Record $10 Billion in Royalties in 2024

Spotify announced on Wednesday that it paid a record $10 billion in royalties to the music industry in 2024, marking the largest annual payout in its history. The Swedish streaming giant reported that nearly 1,500 artists earned over $1 million each in royalties last year, underscoring the platform’s significant financial contribution to the music world.

Spotify also highlighted that its annual payouts have increased substantially over the years, rising by 10 times from $1 billion in 2014. Despite this impressive growth, the company faced a legal challenge last year when it was sued in the U.S. for allegedly underpaying songwriting royalties for millions of songs. However, a federal judge in New York ruled to dismiss the lawsuit earlier this year, clearing the company of the claims.

Nokia Signs Multi-Year Patent License Agreement with Samsung for Video Technologies

Nokia has announced the signing of a multi-year patent license agreement with South Korea’s Samsung. The deal grants Samsung the right to use Nokia’s video technologies in its televisions. In return, Samsung will make royalty payments to Nokia, according to a statement released by the Finnish company on Wednesday.

This agreement is distinct from the existing 5G patent license agreement between the two companies. While Nokia confirmed the terms of the new deal are confidential, it emphasized that the agreement specifically pertains to video technology usage and does not overlap with their previous arrangements concerning 5G patents.