{"id":176801,"date":"2023-10-18T20:03:02","date_gmt":"2023-10-18T19:03:02","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=176801"},"modified":"2023-10-18T23:06:08","modified_gmt":"2023-10-18T22:06:08","slug":"ai-company-anthropic-amazon-sued-universal-music-group","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/ai-company-anthropic-amazon-sued-universal-music-group\/","title":{"rendered":"AI company Anthropic recently secured up to $4bn in investment from Amazon. Now it&#8217;s being sued for copyright infringement by Universal Music Group."},"content":{"rendered":"<p>Universal Music Group (UMG) has this year offered commercial friendship to a number of companies that are innovatively combining generative AI and music&#8230; with copyright-respecting intentions.<\/p>\n<p>For example: In May, UMG <a href=\"https:\/\/www.universalmusic.com\/endel-and-universal-music-group-to-create-ai-powered-artist-driven-functional-music-designed-to-support-listener-wellness\/\" target=\"_blank\" rel=\"noopener\">struck a partnership<\/a> with &#8216;functional AI music&#8217; specialist <strong>Endel<\/strong>; in August, Universal revealed it was to <a href=\"https:\/\/www.musicbusinessworldwide.com\/youtube-and-universal-music-group-partner-to-develop-ai-music-tools-complete-with-protections-for-artists-and-rightsholders\/\" target=\"_blank\" rel=\"noopener\">co-develop AI tools<\/a> with <strong>YouTube<\/strong> that offered \u201csafe, responsible and profitable\u201d opportunities to music rightsholders; and earlier today (October 18), UMG <a href=\"https:\/\/www.musicbusinessworldwide.com\/universal-music-strikes-first-of-its-kind-strategic-ai-partnership-with-bandlab-technologies1\/\" target=\"_blank\" rel=\"noopener\">announced<\/a> &#8220;an industry-first strategic relationship concentrated on artificial intelligence\u201d with <strong>BandLab Technologies<\/strong>, parent to music creation platform BandLab.<\/p>\n<p>Not every artificial intelligence innovator, however, has won <strong>UMG&#8217;s<\/strong> good graces.<\/p>\n<p>Indeed, MBW has just gotten word that Universal Music Group is <em>suing<\/em> one powerful AI platform \u2013 which last month secured a<a href=\"https:\/\/www.anthropic.com\/index\/anthropic-amazon\" target=\"_blank\" rel=\"noopener\"> multi-billion dollar investment from <strong>Amazon<\/strong><\/a> \u2013 for copyright infringement.<\/p>\n      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__tweeny hidden-xs hidden-ms hidden-sm\" data-loaded=\"no\" data-sizes=\"992 1200 1440\" data-name=\"628x90 Sponsor banner #5 (992+1200+1440)\" data-params=\"dfp_sponsor5_628\" id=\"dfp_sponsor5_628\"><\/div>      <div class=\"mb-advert mb-advert__banner mb-advert__banner--inline hidden-xs hidden-sm hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"480\" data-name=\"468x60 Sponsor banner #5 (480)\" data-params=\"dfp_sponsor5_468\" id=\"dfp_sponsor5_468\"><\/div>      <div class=\"mb-advert mb-advert__mobile mb-advert__mobile--inline hidden-ms hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"320 768\" data-name=\"300x50 Sponsor banner #5 (320+768)\" data-params=\"dfp_sponsor5_300\" id=\"dfp_sponsor5_300\"><\/div>      <\/div>      \n<p>Universal&#8217;s new lawsuit against San Francisco-based <a href=\"https:\/\/www.anthropic.com\/\" target=\"_blank\" rel=\"noopener\"><strong>Anthropic<\/strong><\/a> could have ramifications for music rightsholders&#8217; relationships with AI tech firms for years, and perhaps decades, to come.<\/p>\n<p>The suit, filed by UMG&#8217;s publishing company Universal Music Publishing Group, along with co-plaintiffs Concord Music Group and ABKCO, seeks potentially tens of millions of dollars in damages from Anthropic &#8211; which describes itself as an &#8220;AI safety and research company&#8221; &#8211; for the alleged &#8220;systematic and widespread infringement of their copyrighted song lyrics&#8221;.<\/p>\n<p class=\"p1\">      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #1\" data-params=\"dfp_spu1\" id=\"dfp_spu1\"><\/div>      <\/div>      <\/p>\n<p>Anthropic&#8217;s flagship product is called <a href=\"https:\/\/www.anthropic.com\/product\" target=\"_blank\" rel=\"noopener\">Claude<\/a>, which is part-ChatGPT rival and part-content creation engine.<\/p>\n<p>Anthropic proudly<a href=\"https:\/\/www.anthropic.com\/product\" target=\"_blank\" rel=\"noopener\">\u00a0describes Claude<\/a> as &#8220;excel[ling] at a wide range of tasks from sophisticated dialogue and creative content generation to detailed instruction&#8221;.<\/p>\n<p>That&#8217;s all very well \u2013 but the publishers&#8217; lawsuit claims, in no uncertain terms, that Claude&#8217;s &#8220;creative content generation&#8221; tramples all over long-held copyright law in the United States.<\/p>\n<p class=\"p1\">      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #2\" data-params=\"dfp_spu2\" id=\"dfp_spu2\"><\/div>      <\/div>      <\/p>\n<p>The lawsuit, filed in a Nashville court on Wednesday (October 18), claims that, &#8220;in the process of building and operating AI models, Anthropic unlawfully copies and disseminates vast amounts of copyrighted works \u2014 including the lyrics to myriad musical compositions owned or controlled by Publishers&#8221;.<\/p>\n<p>The lawsuit, obtained by MBW, and which you can <a href=\"https:\/\/www.musicbusinessworldwide.com\/files\/2023\/10\/UMG-lawsuit.pdf\" target=\"_blank\" rel=\"noopener\">read in full here<\/a>, continues: &#8220;Publishers embrace innovation and recognize the great promise of AI when used ethically and responsibly. But Anthropic violates these principles on a systematic and widespread basis. Anthropic must abide by well-established copyright laws, just as countless other technology companies regularly do.&#8221;<\/p>\n<blockquote><p>&#8220;Just as Anthropic does not want its code taken without its authorization, neither do music publishers or any other copyright owners want their works to be exploited without permission.&#8221;<\/p>\n<p><span style=\"color: #000000\">Lawsuit filed against Anthropic<\/span><\/p><\/blockquote>\n<p>According to the suit, Anthropic infringes the music companies&#8217; copyrights by &#8220;scraping and ingesting massive amounts of text from the internet and potentially other sources, and then using that vast corpus to train its AI models and generate output based on this copied text&#8221;.<\/p>\n<p>The suit adds: &#8220;Included in the text that Anthropic copies to fuel its AI models are the lyrics to innumerable musical compositions for which Publishers own or control the copyrights, among countless other copyrighted works harvested from the internet.<\/p>\n<p>&#8220;This copyrighted material is not free for the taking simply because it can be found on the internet. Anthropic has neither sought nor secured Publishers\u2019 permission to use their valuable copyrighted works in this way.<\/p>\n<p>&#8220;Just as Anthropic does not want its code taken without its authorization, neither do music publishers or any other copyright owners want their works to be exploited without permission.<\/p>\n<blockquote><p>&#8220;Just like countless other technologies, AI companies must abide by the law.\u201d<\/p>\n<p><span style=\"color: #000000\">Matthew J. Oppenheim (Attorney for ABKCO, Concord and UMPG)<\/span><\/p><\/blockquote>\n<p>\u201cThe unauthorized use of copyrighted material is illegal and, in the case of copyrighted music lyrics, harms songwriters and music publishers,&#8221; reads a statement issued by Matthew J. Oppenheim of Oppenheim + Zebrak, LLP, Attorney for ABKCO, Concord and UMPG.<\/p>\n<p>&#8220;It is well established by copyright law that an entity cannot reproduce, distribute, and display someone else\u2019s copyrighted works to build its own business unless it secures permission from rightsholders. Just like countless other technologies, AI companies must abide by the law.\u201d<\/p>\n<hr \/>\n<p>Universal, Concord and ABKCO&#8217;s lawsuit claims that, as a result of Anthropic&#8217;s alleged song lyric scraping, the company&#8217;s Claude chatbot is able to\u00a0 &#8220;generate identical or nearly identical copies of those lyrics, in clear violation of Publishers\u2019 copyrights&#8221;.<\/p>\n<p>The lawsuit notes that several music lyrics aggregators already exist, the difference being that those sites have obtained the proper licenses from the music publishers to use their copyrighted works on their services.<\/p>\n<p>&#8220;Indeed, there is an existing market through which Publishers license their copyrighted lyrics, ensuring that the creators of musical compositions are compensated and credited for such uses,&#8221; the lawsuit explains.<\/p>\n<p>It adds: &#8220;By refusing to license the content it is copying and distributing, Anthropic is depriving Publishers and their songwriters of control over their copyrighted works and the hard-earned benefits of their creative endeavors, it is competing unfairly against those website developers that respect the copyright law and pay for licenses, and it is undermining existing and future licensing markets in untold ways.&#8221;<\/p>\n<hr \/>\n<p>An additional issue referenced in the complaint is that Anthropic\u2019s AI models generate output containing the publishing companies\u2019 lyrics &#8220;even when the models are not specifically asked to do so&#8221;.<\/p>\n<p>The lawsuit claims that the Claude chatbot responds to various prompts that don&#8217;t specifically ask for the copyrighted lyrics &#8220;by generating output that nevertheless copies Publishers\u2019 lyrics&#8221;.<\/p>\n<p>Examples of such requests include asking the chatbot to &#8220;write a song about a certain topic, provide chord progressions for a given musical composition, or write poetry or short fiction in the style of a certain artist or songwriter&#8221;.<\/p>\n<hr \/>\n<p>The lawsuit claims that &#8220;Anthropic profits richly from its infringement of Publishers\u2019 repertoires and other copyright owners\u2019 works&#8221; but that it has &#8220;never even attempted to license the use of Publishers\u2019 lyrics&#8221;.<\/p>\n<p>The lawsuit continues: &#8220;Though the company only recently launched Anthropic is already reportedly valued at $5 billion or more, has received billions of dollars in funding, and boasts of numerous high-profile commercial customers and partnerships.<\/p>\n<p>&#8220;None of that would be possible without the vast troves of copyrighted material that Anthropic scrapes from the internet and exploits as the input and output for its AI models.&#8221;<\/p>\n<p>Amongst their various demands, the music companies are seeking a jury trial, and statutory damages of up to <strong>$150,000<\/strong> per work infringed. In the accompanying &#8216;Exhibit A&#8217; document filed with the lawsuit, <strong>500<\/strong> works are listed, which means that they are seeking at least <strong>$75 million<\/strong> for alleged copyright infringement.<\/p>\n<p>However, the suit also seeks up to <strong>$25,000<\/strong> in statutory damages per violation &#8220;or in the alternative, at Publishers\u2019 election, Publishers\u2019 actual damages and Anthropic\u2019s profits, in an amount to be proven at trial&#8221; due to Anthropic\u2019s alleged &#8220;removal and\/or alteration of Publishers\u2019 copyright management information in violation of the Copyright Act&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lawsuit claims that &#8216;Anthropic profits richly from its infringement of Publishers\u2019 repertoires and other copyright owners\u2019 works&#8217;<\/p>\n","protected":false},"author":15,"featured_media":176811,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,7],"tags":[5835,648],"class_list":["post-176801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-news","tag-ai","tag-universal-music-publishing-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/176801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=176801"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/176801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/176811"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=176801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=176801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=176801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}