Salt-N-Pepa Fight UMG, SESAC’s $889M Deal, and Global Copyright Reversion Rights
How The Music Business Works - Issue #23
August 7, 2025
Welcome back to How The Music Business Works!
This week’s headlines spotlight major moves in music rights and AI.
SESAC closes a record-breaking $889M securitization, and a controversial U.S. ruling could extend copyright termination rights worldwide and Salt-N-Pepa take UMG to court over blocked reversion efforts.
Meanwhile, Sony sues Napster for unpaid royalties and infringement, and AI audio firm ElevenLabs launches a new music generator built in collaboration with publishers and labels.
SESAC Music Group Closes $889 Million Whole Business Securitization
SESAC Music Group has completed its largest whole business securitization yet, issuing $889 million in five-year senior notes, bringing its total outstanding bonds to roughly $1.1 billion. This marks the largest 144A-rated whole business securitization ever in the music industry. The notes are backed by nearly all of SESAC’s revenue, including its Performing Rights and Music Services divisions. SESAC represents major songwriters and licenses music across top TV shows and films. Its Music Services arm, which includes the AudioSalad platform, supports rights management for creators, publishers, CMOs, and DSPs worldwide. The move strengthens SESAC’s capital access as it expands global operations.
Controversial Ruling on US Termination Right Fulfills the Intention of Congress, Say Creators
A recent U.S. court ruling determined that when music creators exercise their termination rights under U.S. copyright law, those rights apply globally, not just within the U.S. This challenges long-held industry norms and could allow artists and songwriters to reclaim worldwide rights and revenue after 35 years. Five creator advocacy groups, including the Music Artists Coalition and SAG-AFTRA, are urging the Fifth Circuit to uphold the ruling, arguing it fulfills Congress’s intent to protect creators from early, unfair deals. The case, involving songwriter Cyril Vetter, could reshape copyright ownership in the global streaming era if upheld.
ElevenLabs Launches Eleven Music in Collaboration with Music Industry Partners
AI audio leader ElevenLabs has launched Eleven Music, a new tool that allows users to generate studio-quality music from text prompts in multiple genres, languages, and with or without vocals. Built in collaboration with artists, labels, and publishers, the platform includes safeguards to protect rightsholders and is cleared for broad commercial use. ElevenLabs also announced partnerships with Merlin and Kobalt, enabling represented artists and songwriters to help develop Eleven Music Pro, a forthcoming premium model. The company positions this launch as a major step toward building a full-stack AI audio platform with responsible licensing and creator participation.
Amid Legal Battle, Salt-N-Pepa Claims UMG ‘Keeps Us From Re-Releasing Our Music’
Salt-N-Pepa’s Cheryl James and Sandra Denton are suing Universal Music Group for allegedly blocking their efforts to reclaim ownership of their master recordings under Section 203 of the U.S. Copyright Act. This law allows artists to terminate rights transfers 35 years after the original agreement, but UMG claims their works are “made for hire” and not eligible. After serving termination notices in 2022, the duo says UMG retaliated by pulling their hits from streaming platforms and halting promotional efforts. UMG has filed a motion to dismiss, arguing the notices were invalid. The case highlights ongoing tensions between legacy artists and major labels over copyright reversion rights.
Sony Music Sues Napster Over $9.2M in Alleged Unpaid Royalties, Up to $37.5M in Copyright Claims
Sony Music Entertainment has filed a lawsuit against Napster and its parent companies, Rhapsody International and Infinite Reality, alleging over $9.2 million in unpaid royalties and seeking up to $37.5 million in damages for copyright infringement. The suit claims Napster continued using Sony’s recordings without authorization after licenses were terminated, despite collecting fees from millions of subscribers. Sony says Napster failed to honor a payment plan agreed upon after Infinite Reality’s $207 million acquisition of the platform in March 2025. The complaint covers 240 allegedly infringed works and follows previous legal actions against Napster, including a separate $3.4 million royalty dispute with SoundExchange.