AI Copyright Ruling, Anthropic Lawsuit, and PPL Revenue Milestone
How The Music Business Works - Issue #5
March 27, 2025
Welcome back to How the Music Business Works, your go-to source for the latest insights shaping the music industry!
In this edition, we’re diving into major developments at the intersection of music, law, and technology. The U.S. Court of Appeals has ruled that AI-generated works can’t be copyrighted, while music publishers continue their legal battle against Anthropic over unauthorized use of lyrics. PPL celebrates its highest annual revenue in history, and Brazilian authorities crack down on a massive streaming fraud operation. Plus, ASCAP weighs in on the White House’s AI Action Plan, defending the rights of human creators.
Read on for the full breakdown!
AI-Generated Works Cannot Be Copyrighted in the US, Court of Appeals Rules
The U.S. Court of Appeals has ruled that works created solely by artificial intelligence are not eligible for copyright protection under current U.S. law. The case centered on a piece of art generated by an AI system without any human input, which the court determined does not meet the legal requirement of human authorship for copyright eligibility. This decision reaffirms the U.S. Copyright Office’s stance and sets a clear precedent, signaling that until laws are updated, fully AI-generated content cannot receive the same legal protections as human-created works.
Music Publishers ‘Remain Very Confident’ Of Winning Anthropic Case And Will ‘Vigorously Pursue’ Monetary Damages
Music publishers involved in the lawsuit against AI company Anthropic say they remain very confident in their chances of winning the case and plan to vigorously pursue monetary damages. The lawsuit, originally filed in October 2023 by major publishers including Universal Music Publishing, Warner Chappell, and Concord, accuses Anthropic of using copyrighted song lyrics without permission to train its AI models. Although Anthropic has filed a motion to dismiss the lawsuit, the publishers argue that the company’s actions have caused significant harm to the music industry and the livelihoods of songwriters.
PPL reports highest annual revenues in its 90-year history
UK music licensing company PPL reported its highest annual revenues in its 90-year history, reaching £384 million in 2024—up 6% from the previous year. Growth was driven by a 10% rise in international collections, as well as increases in broadcast, online, and public performance revenues. PPL also distributed payments to more than 165,000 performers and recording rightsholders during the year.
Latest Streaming Fraud Bust Emerges In Brazil After 28 Million Fake Plays Discovered
Brazilian authorities have uncovered a large-scale streaming fraud scheme that generated over 28 million fake plays on Spotify using more than 400 fabricated tracks. Many of these tracks were created with the help of AI-generated vocals and beat-making software, then uploaded under false artist identities. The Federal Police arrested one suspect and seized computers, phones, and financial documents during a raid in São Paulo. This investigation is part of a broader crackdown on digital music fraud in Brazil, as concerns grow over the impact of artificial streaming on the integrity of the music industry.
Ascap Defends Creators’ Rights In White House A.I. Action Plan Comments
ASCAP has submitted comments to the White House’s AI Action Plan, urging strong protections for music creators. The organization emphasized that AI companies should not be allowed to use copyrighted works without permission or compensation. ASCAP called for transparency, proper licensing, and fair compensation to ensure human creators are not undermined by advancing AI technologies.