CMU Digest: BMG job losses, AI Copyright Office submissions + more

This week: BMG, AI x Copyright Office, Kobalt x Morgan Stanley, Bandcamp union, Lizzo lawsuit.

A restructure at BMG resulted in job losses thought to impact about 40 employees.

The lay-offs affect the firm's international marketing department and those involved in theatre and film projects, plus the Modern Recordings label. CEO Thomas Coesfeld said “these are tough but necessary decisions". Regarding the winding down of the company's international marketing department, he added that - when it was launched five years ago – having such a team was the "ideal structure" for marketing releases, but that "our recordings business is now three times the size it was then and it’s overwhelmingly streaming-based - it is no surprise that the way we manage our business also has to change".

BMG restructure results in job losses

BMG last week announced a restructure that will result in a number of job losses, impacting on international marketing, theatre and film projects, and the Modern Recordings label

CMUChris Cooke

The US Copyright Office published the submissions it has received as part of a consultation on artificial intelligence.

Unsurprisingly, copyright owners - including music companies - told the government body that any technology firms using existing content to train generative AI models must get permission from whoever controls the copyright in that content. But in their submissions, AI companies insisted that such training activities should constitute fair use under US law, meaning they are not obliged to seek permission. Google, OpenAI and Stability AI were among those to present that argument, with the latter stating: "We believe that training AI models is an acceptable, transformative and socially beneficial use of existing content that is protected by the fair use doctrine".

Tech companies insist training AI models with existing content is fair use in Copyright Office submissions

Submissions to the US Copyright Office’s AI review have been published, with tech companies unsurprisingly insisting that training generative AI models with existing content is fair use and therefore can be done without the permission of copyright owners

CMUChris Cooke

Kobalt announced a new $700 million partnership with Morgan Stanley to buy up more music rights.

The money is being provided by investment funds managed by Morgan Stanley Tactical Value, an outfit which - according to its MD Cameron Smalls - "has profound respect for songwriters and the immense value of their art". Kobalt previously set up, advised and subsequently sold two music rights owning funds via its Kobalt Capital venture. As a result, the company’s CEO Laurent Hubert said, "Kobalt is a pioneer in investing in music, increasing the value of copyrights and creating music as a viable asset class". Catalogues acquired via the new partnership will be managed by the core Kobalt business.

Kobalt announces $700 million partnership with Morgan Stanley to buy up more music rights

Kobalt has announced a partnership with investment funds managed by Morgan Stanley Tactical Value which will provide $700 million to buy up song catalogues over the next few years

CMUChris Cooke

Bandcamp United, the union of Bandcamp employees, filed a complaint with the US National Labor Relations Board.

It relates to the job cuts that occurred as the direct-to-fan company was bought by Songtradr from Epic Games. Only about half of the firm's employees have been offered jobs by the new owner, with the rest being made redundant by Epic. Crucially, none of the eight union members that were leading negotiations with management before the Songtradr acquisition have been offered jobs. Despite Songtradr insisting it didn't have any information about union membership when deciding who to hire, the union has accused the company of "discrimination on the basis of labor activity".

Bandcamp union files complaint with federal agency over redundancies

The Bandcamp United union has filed a complaint with the US National Labor Relations Board after none of the eight Bandcamp employees who had been leading union negotiations with management were offered jobs by new owner Songtradr

CMUChris Cooke

Lizzo's Big Grrrl Big Touring company formally responded to the lawsuit filed by three former members of the musician's dance team.

It is seeking dismissal of the litigation. Lizzo’s lawyer said that the lawsuit - which claims that the musician and her company created a toxic working environment - was filed "out of spite and in pursuit of media attention, public sympathy and a quick payday with minimal effort". The touring business also submitted declarations from eighteen other people who have worked with Lizzo that dispute the various allegations made by the dancers. However, attorneys working for the plaintiffs said they had “dozens of independent witnesses who support their stories”.

Lizzo’s touring company seeks dismissal of lawsuit filed by former dance team members

Lizzo’s company Big Grrrl Big Touring has responded to the lawsuit filed by three former members of the musician’s dance team, accusing the dancers of unprofessional conduct and seeking dismissal of the case on anti-SLAPP grounds

CMUChris Cooke

This week's Setlist Podcast

CMU’s Andy Malt and Chris Cooke review key events in music and the music business from the last week. On this edition, big tech companies' insistence that training AI on existing content constitutes fair use under US copyright law, and the Grammy Awards' insistence that Christians do not swear.

Setlist Podcast: Tech companies say fair use trumps copyright in AI

Big tech companies’ insistence that training AI on existing content constitutes fair use under US copyright law, and the Grammy Awards’ insistence that Christians do not swear

CMUAndy Malt

ICYMI:

Jay-Z discusses reclaiming his recording rights from Def Jam

Digital now biggest revenue generator for song right collecting societies, CISAC confirms

Bristol-based music distributor 3tone on a knife edge as employment tribunal judgements stack up and artists demand unpaid royalties

Labels really don’t want other artists mimicking Taylor Swift’s re-recording initiative

New York Times investigation put spotlight on Kanye West's years of misconduct during Adidas partnership

Musicians are shy about admitting AI use, survey finds