Anthropic Piracy Claims, USCO Power Struggle, and Global Music Policy Clashes
How The Music Business Works - Issue #24
August 14, 2025
Welcome back to How The Music Business Works!
This week’s roundup spans high-stakes copyright battles, policy clashes, and international trade disputes shaping the music and tech landscape.
Music publishers have accused Anthropic of pirating lyrics via BitTorrent, while the Perlmutter v. Blanche fight over U.S. Copyright Office leadership edges toward November hearings. In the U.S., SoundExchange is pushing back after a judge dismissed its $150M SiriusXM suit, and in Australia, indie labels are rallying against a proposed AI copyright exception.
Meanwhile, U.S. lawmakers are pressuring Canada to scrap its “streaming tax,” warning of impacts on both sides of the border.
Music Publishers Allege Anthropic Used BitTorrent To Pirate Copyrighted Lyrics
Music publishers suing Anthropic have expanded their claims, alleging the AI company not only used copyrighted lyrics to train its Claude chatbot without permission, but also pirated them via BitTorrent, potentially uploading them to other users and violating distribution rights. The publishers say they learned of Anthropic’s torrenting through a separate lawsuit by book authors, in which evidence showed Anthropic downloaded millions of files from pirate sites like LibGen, which also hosts lyric and sheet music books for works in the case. They’re seeking to amend their complaint to include these new allegations and possibly add charges of unlicensed distribution.
US Copyright Office Skirmishes Intensify, Though Time Isn’t On Perlmutter’s Side
The Perlmutter v. Blanche case, centered on Shira Perlmutter’s challenge to her removal as U.S. Register of Copyrights, has entered a new phase, with both sides set to file dueling summary judgment motions. Perlmutter’s motion is due September 8, followed by the government’s response and cross-motion on September 22, with all filings wrapping up by October 14 ahead of a November 4 hearing. Meanwhile, Perlmutter is also seeking an emergency injunction to regain her post pending appeal. The dispute carries broader implications for federal policy on AI and copyright, though significant action on that front remains on hold until the case is resolved.
SoundExchange Slams Judge’s Ruling In SiriusXM Case As ‘Entirely Wrong On The Law’
A federal judge has dismissed SoundExchange’s $150 million lawsuit against SiriusXM, ruling the PRO lacks authority under U.S. law to sue on behalf of artists and labels for unpaid digital performance royalties. Judge Naomi Reice Buchwald found no clear congressional intent in Section 114 of the Copyright Act to grant SoundExchange litigation power, unlike the Mechanical Licensing Collective’s explicit authority under Section 115. SoundExchange called the decision “entirely wrong on the law” and warned it undermines its ability to enforce statutory licenses, vowing to consider appeals or state court actions. The case stems from claims SiriusXM underreported revenue, with alleged unpaid royalties now exceeding $400 million.
Australian Music Industry Says Proposed AI Copyright Exception Would Be “A Dangerous Step Backwards”
The Australian Independent Record Labels Association (AIR) has joined other music industry groups in opposing a government proposal to introduce a text and data mining copyright exception that would allow AI companies to train on creative works without permission. Responding to the Productivity Commission’s interim report, AIR warned the change would undermine creators’ rights and enable multinational tech firms to exploit music without payment. It argued Australia’s current copyright law already supports AI development through voluntary licensing deals and that reforms should focus on stopping unlicensed AI use. The stance echoes similar pushback from ARIA and PPCA, as the global debate over AI training rights intensifies.
US Republicans Want To Press Canada To Ditch ‘Streaming Tax’
Debate over Canada’s “streaming tax”, a 5% levy on global streaming services’ Canadian revenues to fund local creators, has intensified, with U.S. Republican lawmakers urging the White House to push for its repeal during trade talks. They argue the law discriminates against American companies, limits consumer choice, and harms U.S. artists. Streaming platforms, via trade group DiMA, echoed the criticism, warning the policy could raise consumer costs and hurt the growth and competitiveness of Canada’s music industry.