MLC Surpassed $3bn in Royalties Distributed, Suno Fights Stream-Ripping Claims, and Songwriters Question PRS
How The Music Business Works - Issue #32
October 9, 2025
Welcome back to How The Music Business Works!
This week’s headlines highlight the growing tension between innovation and accountability across the music and tech industries.
The MLC has surpassed $3 billion distributed to songwriters and publishers since its 2021 launch, while top writers like Elton John and Paul McCartney have urged PRS for Music to improve transparency and clarify administrative costs.
On the AI front, Suno is fighting to dismiss stream-ripping allegations from major labels, and Concord’s lawsuit against Anthropic will proceed after a court rejected the AI firm’s motion to dismiss. Meanwhile, WME has opted out its entire roster from OpenAI’s Sora video tool, reflecting growing concerns over likeness rights and consent in the age of hyper-realistic AI.
Here’s what’s making headlines.
The MLC Has Distributed $3Bn+ to Songwriters and Publishers to Date
The Mechanical Licensing Collective (MLC) announced it has surpassed $3 billion in royalties distributed to songwriters and publishers since launching operations in 2021. To date, the organization has processed over $3.9 billion in total royalties, maintaining an impressive 92% match rate and completing all 54 monthly royalty distributions on time. The MLC now counts 68,000 members and manages data for over 50 million songs. It has also distributed $225 million in historical royalties previously unmatched by DSPs. CEO Kris Ahrend praised members for building a transparent and innovative system, while Board Chair Alisa Coleman emphasized the MLC’s role as the largest single source of U.S. digital revenue for songwriters and publishers.
High Profile Songwriters Express Concern About PRS Transparency, Accuracy and Admin Costs
Eighteen major British songwriters, including Elton John and Paul McCartney and Thom Yorke, have written to PRS for Music questioning the society’s administrative costs and calling for greater transparency and fairness in royalty distributions. The letter raises concerns about how PRS manages members’ money and urges the establishment of “clear and fair methodologies” for distributing income. It follows the recent dismissal of Blur drummer Dave Rowntree’s class-action lawsuit over PRS’s handling of unallocated “black box” royalties. PRS responded that it is member-owned, regularly reviews its policies, and continues to meet with members to explore improvements, emphasizing its commitment to accurate and timely royalty payments.
OpenAI has unveiled Sora, a new AI tool that can generate highly realistic videos from text prompts, including capturing facial expressions, voices, and motion. The company’s plan includes default use of likenesses unless rights holders explicitly opt out. The move follows growing concerns about deepfakes and unauthorized use of celebrity images. In response, leading talent agency WME announced it would withdraw all of its clients from the tool, citing concerns about image rights, consent, and control. The decision mirrors past actions by major music companies opting out of AI training use. This clash highlights rising tension between generative AI capabilities and the protection of performers’ visual and identity rights.
Suno Asks Court to Reject Stream-Ripping “Gambit” by Major Labels in AI Legal Battle
Generative AI music platform Suno has asked a U.S. federal court to dismiss new allegations from major labels that it illegally stream-ripped YouTube videos to train its AI. The labels expanded their copyright lawsuit last month, claiming Suno downloaded recordings directly from YouTube without permission. Suno didn’t deny the practice but argued it isn’t illegal under the DMCA, since YouTube content is publicly accessible and not protected by “access controls.” The company maintains its use of copyrighted material for AI training qualifies as fair use, calling the new claims “futile.” The case follows similar disputes over AI training data, including Anthropic’s recent $1.5-billion settlement with authors.
Concord v. Anthropic: Court Denies Dismissal Motion in AI Copyright Case
A federal judge has denied Anthropic’s motion to dismiss the copyright lawsuit filed by major music publishers, including Concord, allowing the case over AI-generated lyrics to move forward. Judge Eumi Lee ruled that the publishers had plausibly alleged contributory and vicarious infringement, arguing Anthropic benefited from using their lyrics to make its Claude chatbot more popular and valuable. The court also found sufficient grounds for claims that Anthropic removed copyright management information in violation of the DMCA. Meanwhile, discovery disputes have escalated, with a magistrate judge warning both sides could face sanctions for mismanaging the process. A trial is tentatively set for September 2026.