Senate Blocks AI Moratorium, PPL Distributes Millions, and UMG’s Downtown Deal Faces Opposition
How The Music Business Works - Issue #18
July 3, 2025
Welcome back to How The Music Business Works!
This week’s newsletter highlights key developments shaping the future of music rights and regulation.
In the U.S., the Senate blocked an AI moratorium, preserving state protections for creators. A billion-dollar piracy case against Cox heads to the Supreme Court, and Snoop Dogg has settled a copyright dispute over unlicensed backing tracks.
In Europe, the ECSA is urging the EU to block UMG’s Downtown acquisition, citing risks to competition. Meanwhile, UK licensing body PPL paid out £96.7M to 139,000 performers and rightsholders.
Senate Blocks AI Moratorium, Preserves State Power to Protect Creators
In a major win for the music industry, the U.S. Senate voted 99–1 to reject a proposal that would have blocked states from regulating AI for a decade. The measure, backed by tech leaders, drew fierce opposition from music creators and rights groups who warned it would protect AI companies using songs and recordings without consent. Music advocates, including the Human Artistry Campaign and RIAA, praised the decision as crucial for defending artists, stopping deepfakes, and ensuring transparency in how AI models are trained.
PPL Reveals £96.7m Payout to 139k Musicians and Rightsholders
UK music licensing organization PPL has announced a Q2 2025 payout of £96.7 million ($132.6M) to 139,000 performers and recording rightsholders, including 6,400 receiving payments for the first time. While the figure marks a 6.8% drop from last year’s record £103.7 million Q2 payout, the number of recipients has increased from 133,000 to 139,000 year over year. The distribution covers royalties collected in the UK as well as significant international payments from collective management organizations in countries including France, the Netherlands, Japan, Norway, and the US.
The ECSA Urges EU to Block UMG’s Acquisition of Downtown
The European Composer & Songwriter Alliance (ECSA), representing over 55 organizations across Europe, has called on the European Commission to block Universal Music Group’s proposed $775 million acquisition of Downtown Music Holdings. ECSA argues the deal would deepen market concentration, limit choices for music creators, and harm cultural diversity by giving UMG even greater influence over distribution, royalty rates, and streaming negotiations. ECSA also criticized UMG’s push for an “artist-centric” streaming model, warning it marginalizes smaller creators and reinforces an uneven industry.
Supreme Court to Take on Major Labels’ Copyright Case Against Cox
The U.S. Supreme Court will hear Cox Communications’ appeal in a major copyright case that could reshape how internet providers are held accountable for music piracy. Cox was originally found guilty in 2019 and hit with a $1B fine for enabling repeated infringement by subscribers. Music companies—including Sony, Universal, and Warner—argue Cox ignored clear piracy warnings. A Supreme Court ruling in Cox’s favor could limit liability for ISPs and impact ongoing lawsuits, including a $2.6B case against Verizon. The outcome could redefine how the music industry fights piracy online.
Snoop Dogg Settles Copyright Dispute Over ‘BODR’ Backing Tracks
Snoop Dogg has settled a copyright lawsuit with producer Trevor Lawrence Jr., who claimed the rapper used two of his backing tracks on the BODR album without a signed license agreement. Lawrence alleged he never granted formal permission for the tracks’ use or commercial exploitation, including their sale as NFTs, making it a case centered on unconfirmed copyright licensing. Snoop’s team argued a $20,000 payment covered usage, but no written contract was ever finalized. The case raised key questions around implied vs. explicit rights in music licensing before being dismissed by mutual agreement.