Sweden launched the first AI music licence, allowing AI businesses to utilise copyrighted music for training while paying songwriters and composers.
This pioneering initiative by the Swedish Performing Rights Society (STIM) breaks new ground in how AI interacts with music creation, protecting over 100,000 artists’ rights and income in a rapidly evolving landscape.
Artificial intelligence transforms music creation with tools that generate compositions drawing from vast data, often including copyrighted works. Until now, artists and rights holders have raised concerns about AI companies using their material without permission or payment.
STIM’s new licence, signed with Stockholm-based startup Songfox, directly addresses this issue. Songfox’s platform enables users to create AI-generated songs legally, while royalties flow back to the original creators.
How the AI music licence works
The licence requires AI firms to pay royalties when their systems use copyrighted music for training. It also mandates technology that tracks AI-generated outputs and traces them back to original human-created works.
According to Simon Gozzi, STIM’s Head of Business Development, the payments come through a “mix of licensing fees and revenue shares.” The more demand an AI service creates, the larger the returns for rights holders.
This transparent system makes “revenues auditable in real-time,” STIM explained, closing trust gaps between AI firms and artists.
STIM’s acting CEO, Lina Heyman, confirmed, “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.”
The International Confederation of Societies of Authors and Composers predicts that unmanaged AI progress may decrease music producers’ revenue by 24% by 2028. The license mitigates this risk while allowing creators to prosper in the $17 billion AI music business.
Sweden, known for pioneering global music standards through platforms like Spotify and TikTok, is again setting a precedent with this licensing model.
Songfox’s adoption marks a crucial stress test in shaping fair music usage in AI, aiming for a market where rights holders and AI firms thrive.
This innovative licence is a forward-thinking solution that balances AI innovation with artists’ rights, ensuring creators receive their due in the expanding world of AI-generated music.