Swedish Artists Secure AI Royalties in Landmark Music Licensing Deal

Swedish Music Rights Society Signs Landmark AI Licensing Deal

Sweden's Performing Rights Society (STIM) has signed what it calls the world’s first licensing agreement with an artificial intelligence company that generates music. The Stockholm-based start-up Songfox, which lets fans and creators produce AI-generated compositions legally, will now license music on behalf of STIM’s 100,000 artists.

This deal ensures that artists receive compensation when their work is repurposed by AI. Songfox will use third-party attribution technology called Sureel to trace AI-generated outputs back to the original human-created works. This transparency allows artists to earn revenue from AI use in real time.

Simon Gozzi, STIM's Head of Business Development and Industry Insight, explained that AI companies will pay through a combination of licensing fees and revenue shares. Artists will also get upfront payments when their works are used for training AI models. Essentially, the more an AI service uses copyrighted material, the higher the returns for rights holders.

STIM describes this first agreement as a "stress-test" for a future market-based model that ensures fair compensation and equal competition. Gozzi said, "By showing attribution and ring-fencing of AI revenues in practice, we aim to give Europe a blueprint that others can adopt—making this a global standard over time."

Why This Matters for Music Creators

Recent studies warn that AI could cut nearly a quarter of music creators’ revenue within the next three years. This deal marks an important step toward protecting artists’ income and rights in an era where AI-generated content is on the rise.

How Europe Is Responding to AI and Copyright

While Sweden leads with this licensing agreement, other European artist organizations remain concerned about gaps in current EU legislation. The EU AI Act allows artists to opt out of having their work used to train AI, but many report that opting out hasn’t been effective. Additionally, the law does not address remuneration for content already scraped by AI.

Groups like the European Composer and Songwriter Alliance (ECSA) and the European Grouping of Societies of Authors and Composers (GESAC) are pushing for stronger protections and fair compensation. They are awaiting outcomes of two key copyright lawsuits filed by Germany's GEMA against OpenAI and Suno AI. These cases could set important legal precedents for AI and copyright enforcement.

Universal Music Group is also pursuing a copyright lawsuit against AI company Anthropic, underscoring the growing legal focus on AI’s impact on music rights.

Looking Ahead

STIM’s agreement with Songfox is a practical example of how AI-generated music can be integrated into existing rights frameworks. While it’s only a first step, it creates a path for other societies and AI companies to follow.

For music creators, this development highlights the importance of staying informed about AI's role in content creation and rights management. Ensuring fair compensation will depend on continued collaboration between rights organizations, AI developers, and lawmakers.

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