As AI technologies become more embedded in both content creation and business infrastructure, questions of legitimacy, competition, and creative control are rising to the surface. For record labels and music publishers, the challenge is about staying ahead of AI’s ripple effects!
#1. Meta rejects EU AI code…
… When Anthropic and OpenAI signed on. Meta made headlines for going the other way. The company declined to sign, calling the framework overly restrictive. While this is technically a non-binding agreement, it signals broader tension between tech platforms and European regulators, especially as AI plays a growing role in media production. For music stakeholders, Meta’s stance raises concerns about how (or whether) future AI tools will respect licensing, attribution, and creative IP norms.
#2. The EU Investigates UMG’s Downtown Deal
Universal Music Group’s $775 million acquisition of Downtown Music Holdings is officially under the microscope. The EU launched a Phase II investigation, citing potential risks to competition in distribution and publishing services. This deeper review doesn’t mean the deal is blocked, but it does suggest that regulators are taking consolidation in the music sector more seriously. For other players, this sets a precedent: future acquisitions may face longer timelines and heavier scrutiny, especially in a data-centric music economy.
#3. UMG Doubles Down on AI Patents
Even as regulators look closely at its expansion, UMG is investing in its AI footprint. The label just partnered with Liquidax Capital to accelerate the development of AI patents in marketing, rights management, creative tools, and beyond. This reflects a larger strategic pivot: controlling not only the music catalog but also the technology that surrounds it. As AI becomes part of every release and campaign, owning the tools could prove as valuable as owning the rights.
#4. Deepfake Tracks Hit Artist Legacy Pages
AI-generated songs have started appearing on the official Spotify profiles of deceased musicians, without permission. Cases involving Blaze Foley and Guy Clark show how easily attribution can be spoofed and how vulnerable catalogs are to synthetic uploads. These tracks weren’t just mimicking the artist’s style; they were placed alongside verified works, confusing fans and undermining trust. It’s a sharp reminder that digital rights management must evolve as fast as generative tools do.
#5. Velvet Sundown and the AI Music Dilemma
To wrap up our Weekly Roundup, a viral experiment in AI-generated artistry: the band Velvet Sundown recently attracted over a million monthly Spotify listeners, despite being entirely artificial. Their success wasn’t based on transparency but on mimicry. While platforms scramble to regulate deepfakes, the line between authentic and artificial is getting harder to see. For A&R teams and catalog owners, this raises the bar: proving legitimacy may become as crucial as proving quality.
