Make Me Smart The music industry vs. AI
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Sep 25, 2025 
Dan Runcie, founder of Trapital, shares his expertise on the evolving music industry and the impact of AI on copyright laws. He discusses the implications of Anthropic's recent settlement for record labels embroiled in their own lawsuits. Runcie sheds light on the complexities of fair use versus infringement, especially with AI generating music. He also highlights the challenges stars face in creating viral hits today and the growing trend of artists pulling their catalogs from platforms as a statement. It's a captivating dive into the future of music and technology!
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Anthropic Ruling Signals Precedent For Music
- The Anthropic settlement signals a likely path for music-rights litigation and possible payouts or licenses to follow.
- Major labels may leverage that precedent to pursue settlements or licensing deals with AI music companies.
Consolidation Gives Labels Collective Power
- Music rights are more consolidated than book publishing, giving labels stronger collective leverage in disputes.
- That consolidation increases the likelihood of coordinated legal or lobbying action against AI firms.
Fair Use Claims Are Risky And Fact-Driven
- Fair use defenses can win in court but are costly and fact-specific, especially around how training data was obtained.
- Whether a company bought tracks or scraped them (e.g., from YouTube) can determine infringement versus fair use outcomes.