Universal, Warner and Sony Strike Licensing Deals With AI Startup Klay


For the first time, all three of the major labelsUniversal Music Group, Sony Music and Warner Music Group, along with their respective publishing arms – have struck individual licensing deals with the same artificial intelligence-focused music startup: Klay.

In an announcement on the agreements, WMG explains that Klay “is an entirely new subscription product that will uplift great artists and celebrate their craft. Within Klay’s system, fans can mold their musical journeys in new ways while ensuring participating artists and songwriters are properly recognized and rewarded.” 

The release goes on to say that the startup’s “large music model” has only been trained on licensed music and that Klay is also working to include “all” independent labels, artists, songwriters and publishers. Universal Music Group announced a strategic partnership with Klay on Oct. 28, writing that the pair would be working to develop a “pioneering commercial ethical foundational model.”

Details on the subscription model and products Klay will be releasing are scarce – the company’s website currently only shows the tagline “Music Set Free” and a link to join its waitlist. The company’s leadership team includes founder and CEO Ary Attie; co-founder, Chief Content and Commercial Officer and former Sony Music executive Thomas Hesse; former Google DeepMind music head Björn Winckler; and CTO Brian Whitman, a former scientist at Spotify and founder of The Echo Nest.

WMG CEO Robert Kyncl wrote in a blog post also published Nov. 20 that he had established “three non-negotiable principles” around any AI deals the company would make: “We will only make agreements with partners who commit to licensed models; The economic terms must properly reflect the value of music; And, most importantly, artists and songwriters will have a choice to opt-in to any use of their name, image, likeness, or voice in new AI-generated songs.” He went on to write that “we are entering the next phase of [music] innovation. The democratization of music creation.”

The training of AI models on unlicensed music and other creative works has been a constant source of criticism and legal action from the entertainment industry. In June last year, the Recording Industry Association of America announced suits brought by the three major labels against Udio and Suno, two AI-focused music startups. Billboard reported in June that all three majors were in talks with both companies to establish licensing agreements. Universal Music Group said it had reached a settlement with Udio on Oct. 30 and the Los Angeles Times reported in November that WMG had also settled with the company.


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