Make Me Smart The music industry vs. AI (rerun)
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Dec 25, 2025 
Dan Runcie, founder of Trapital, breaks down the evolving music industry landscape. He discusses the implications of Anthropic's copyright settlement for record labels and the ongoing fair use debates surrounding AI. Runcie reveals why even top artists are struggling to produce hits amid changing algorithms and fragmented audiences. He also highlights how labels are acting like private equity firms, increasingly buying proven catalogs. This insightful conversation dives into the legal and economic shifts shaping music today.
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Anthropic Case Sets A Precedent
- The Anthropic $1.5B settlement signals a legal pathway for AI copyright cases to favor rightsholders.
- Dan Runcie warns music labels could pursue similar settlements or licensing deals with AI firms.
Music's Industry Consolidation Matters
- Music rights are more consolidated than book publishing, giving labels stronger collective leverage.
- That consolidation makes the music industry likelier to secure favorable outcomes against AI than fragmented book publishers.
Fair Use Hinges On Data Source
- Fair use arguments are contested and fact-specific, especially around how training data was obtained.
- Labels claim infringement while AI firms claim fair use, and courts will consider purchase versus scraping details.