Archive 17. January 2025

Recent Developments in Music Law in Germany, Europe, and Internationally

By in AI, AI in Music Production, AI-Generated Music, Article 17 of the DSM Directive, Automated Licensing Systems, Berne Convention, Blockchain, collecting societies, collective rights management systems, Contract Drafting, copyright law, cross-border digital music rights, EU Artificial Intelligence Act, EU Copyright Directive, European Licensing Hub, Fair Compensation, GEMA, German Copyright Act (UrhG), German law, Global Music Streams, intellectual property law, Legal Advice, Live Music, mandatory minimum payouts, Mandatory revenue-sharing model, Metaverse, music law, music production, Music Rights, NFTs, Non-Fungible Tokens, Rights Enforcement, Streaming, Sustainability, user-generated content (UGC), Virtual Concerts, WIPO Tag , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

1. Germany

  1. Implementation of the EU Copyright Directive (DSM Directive):
    • Key Changes:
      • Article 17 of the DSM Directive: Platforms like YouTube are directly liable for copyrighted content uploaded by users unless they meet specific requirements, such as obtaining licenses or implementing effective content filtering technologies.
      • Introduction of exceptions for user-generated content (UGC), such as parodies, critiques, and quotes, provided the use is non-commercial.
    • Practical Impact:
      • Platforms are investing in upload filters and licensing models.
      • Artists benefit from stronger negotiating positions with platforms.
  2. Strengthening Rights for Artists and Composers:
    • Amendments to the German Copyright Act (UrhG) require licensees to provide transparent accounting and ensure fair remuneration for creators.
  3. Copyright for AI-Generated Music:
    • There is an ongoing debate in Germany about whether and how AI-generated music can be protected. Protection depends on whether human contribution exists or whether AI tools are considered merely auxiliary.

2. European Union

  1. Harmonization of Music Rights:
    • The EU is working on connecting collecting societies like GEMA in Germany to simplify licensing across Europe.
    • Introduction of a European Licensing Hub for cross-border digital music rights.
  2. Regulation of AI in Music Production:
    • The proposed EU Artificial Intelligence Act could set standards for AI systems in music production, including transparency and liability requirements.
  3. Fair Contracts for Live Music and Streaming:
    • New EU rules aim to create fairer compensation for musicians in live performances and streaming. This includes mandatory minimum payouts for streaming services.

3. International

  1. WIPO Negotiations (World Intellectual Property Organization):
    • The WIPO is discussing global standards for managing AI-generated music, focusing on copyright and licensing.
    • Adjustments to international treaties like the Berne Convention are being considered to address new technologies and digital use.
  2. Compensation for Global Music Streams:
    • Efforts are underway to establish international standards for compensating artists and creators for global music streams, particularly through reforms to collective rights management systems.
  3. NFTs and Music Rights:
    • Globally, legal frameworks are being developed for music-related NFTs (Non-Fungible Tokens), addressing how they intersect with copyright law and whether they represent licenses or ownership transfers.

Future Developments in Music Law

  1. Digitalization and Artificial Intelligence:
    • With the growing use of AI in music production, new regulations may emerge to establish clear protection mechanisms for AI-generated works.
    • Automated Licensing Systems: Blockchain technologies may automate rights management and licensing globally.
  2. Streaming and Fair Compensation:
    • Discussions about fair revenue distribution from streaming will intensify. Mandatory revenue-sharing models could be introduced to directly benefit artists.
  3. International Harmonization:
    • Countries may increasingly work toward unified standards for digital music rights, offering global creators better protection and minimizing legal uncertainties.
  4. Metaverse and New Music Applications:
    • As the metaverse grows, questions will arise about how music is protected and licensed in virtual worlds.
    • Virtual Concerts and Interactivity: Music law must adapt to hybrid models of physical and digital performances.
  5. Sustainability in the Music Industry:
    • Future copyright provisions may also address the carbon footprint of music production and distribution.

Challenges and Roles for Music Law Experts:

  1. Legal Advice:
    • Advising artists and platforms on new liability and licensing requirements.
  2. AI and Technology:
    • Developing new legal frameworks for AI-generated music and automated rights management.
  3. Contract Drafting:
    • Negotiating contracts for streaming, NFTs, and virtual concerts.
  4. International Collaboration:
    • Supporting cross-border licensing and adapting to international standards.
  5. Rights Enforcement:
    • Assisting creators in enforcing their claims, particularly in the digital space.

Music law will continue evolving to address technological and societal changes. The increasing digitalization, the rise of AI, and the globalization of the music industry are among the most significant challenges and opportunities shaping its future.