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AI disputes shift from courts to boardrooms

Created at 1 Jul · 11:11 AM1 source↑ Market-relevant
IN SHORT

AI companies are increasingly resolving disputes through licensing deals rather than litigation, with examples like Getty Images and OpenAI striking agreements. This trend signals a move towards collaboration and new revenue streams, though questions remain about fair compensation for individual artists.

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Key Numbers

£900,000fine for StubHub by CMA
50,000customers to receive refunds from StubHub
80%contribution of Black music to UK recorded music market
£24.5bnUK recorded music market value contributed by Black music
£30bntotal UK recorded music market value
22%senior industry roles held by BAME professionals
20%pay gap for Black artists and executives

Who's Involved

Nick Eziefula
Lawyer and rapper with a perspective on AI and art
Getty Images
Stock photo agency that reached a deal with OpenAI
OpenAI
AI research lab that struck a deal with Getty Images
Stability AI
AI company sued by Getty Images
A24
Film studio partnering with Google DeepMind
Google DeepMind
AI research lab partnering with A24
Udio
AI music platform that struck a deal with major music companies
Suno
AI music platform that struck a deal with major music companies
CMA
UK competition regulator that fined StubHub
StubHub
Reseller fined for drip-pricing
UK Music
Organization behind the Black Music Means Business report
Gorillaz
Virtual band that performed at Tottenham Hotspur stadium
Black Thought
Rapper who made a guest appearance at Gorillaz show
Moonchild Sanelly
Artist who made a guest appearance at Gorillaz show
Damon Albarn
Frontman of Gorillaz
Jords
London rapper
Melé
Collaborator on Jords' track So High
Wonky Logic
Collaborator on Jords' track So High
Marger
Collaborator on Jords' track Ruby
Moyses Dos Santos
Bassist exploring Brazilian roots on debut album Maria
Arthur Verocai
Featured artist on Moyses Dos Santos' album Maria
Theo Croker
Featured artist on Moyses Dos Santos' album Maria
Lynda Dawn
Featured artist on Moyses Dos Santos' album Maria
Scorcher
Grime artist
AI disputes shift from courts to boardrooms

↳ Why This Matters

The shift from AI-related disputes to deal-making indicates a maturing market where companies are finding ways to integrate AI into their existing business models, potentially unlocking new revenue streams and fostering innovation, while also raising important questions about artist compensation and the future of creative work.

Key facts

  • Getty Images, which had sued Stability AI for copyright infringement, has reached a licensing agreement with OpenAI.
  • The deal allows Getty Images to use its library with ChatGPT, creating new revenue and enhancing AI output trust.
  • A24 has partnered with Google DeepMind.
  • Major music companies have also entered into deals with AI music platforms Udio and Suno.

The landscape of artificial intelligence and creative industries is shifting from legal battles to collaborative deals, according to Nick Eziefula, a lawyer and rapper. Companies are increasingly opting for licensing agreements over courtroom confrontations.

Getty Images, after suing Stability AI for alleged copyright infringement, has now reached a deal with OpenAI. This agreement allows Getty to leverage its extensive image library with ChatGPT, aiming to create new revenue streams and foster greater trust in AI-generated content. This move signifies a strategic pivot from conflict to cooperation.

The trend is further evidenced by partnerships such as A24 with Google DeepMind and major music companies striking deals with AI music platforms Udio and Suno. These developments suggest a broader industry movement towards boardroom bargains rather than protracted legal disputes.

However, from an artist's perspective, Eziefula notes a degree of confusion regarding how individual creatives will be compensated when their work is used by AI, and whether the payments reflect fair value. Concerns also exist about whether these large-scale deals consolidate power in ways that might undermine independent artists or reduce the impetus for legislative regulation.

On the legal front, complex commercial, legal, and regulatory questions remain, suggesting continued demand for legal expertise in navigating these nuanced agreements. Eziefula maintains faith in human creativity, asserting that music and art should not become easy, as that would render them meaningless.

In separate news, the UK's Competition and Markets Authority (CMA) has cracked down on 'drip-pricing' in the ticketing market, fining StubHub £900,000 and mandating refunds for 50,000 customers due to misleading upfront pricing. The report 'Black Music Means Business' highlights Black music's significant contribution to the UK's music industry, while also pointing out disparities in senior roles and pay gaps for Black artists and executives.

The piece also touches on a Gorillaz concert at Tottenham Hotspur stadium, featuring guest appearances from artists like Black Thought and Moonchild Sanelly, with frontman Damon Albarn emphasizing the band's socialist ethos. Finally, Eziefula shares personal music recommendations, highlighting artists such as Jords, Moyses Dos Santos, and Scorcher.

Frequently asked questions

The main trend is a shift from AI disputes, such as lawsuits, towards deal-making and licensing agreements between AI companies and content creators.

Getty Images has reached a deal with OpenAI, A24 has partnered with Google DeepMind, and major music companies have struck deals with AI music platforms Udio and Suno.

Individual artists are concerned about how their work is used, whether they will be fairly compensated, and if these large deals consolidate power in ways that undermine their position.

The CMA fined StubHub £900,000 and required refunds for 50,000 customers for engaging in 'drip-pricing', where additional fees were only revealed late in the purchase process.

What Happens Next

01Further deals between AI companies and content creators are expected.
02Legislators may face increased pressure to address AI regulation.
03Individual artists will continue to seek clarity on compensation for AI-used work.

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Cadence

How It Developed

Getty Images sued Stability AI for copyright infringement.
Getty Images reached a licensing deal with OpenAI.
A24 partnered with Google DeepMind.
Major music companies struck deals with Udio and Suno.

Sources

T1
AI disputes are turning into dealsCity AM

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