GEMA Unveils AI Licensing Strategy, Demands 30% Revenue Share from AI Music Developers
GEMA has unveiled detailed specifics of its generative AI licensing framework, introducing a two-component model aimed at protecting creative works while accommodating technological advancement.
An overview of the GEMA licensing model for generative AI platforms. Photo Credit: GEMA
The first component targets all generative AI providers operating in Germany that have used protected musical works, regardless of when or where the training occurred. These providers must pay:
- 30% of all net income generated by their AI models
- An additional minimum royalty obligation
The second component focuses on downstream revenue, requiring payments for:
- AI-generated music used in public establishments
- Streaming service plays
- Any other economic benefits from AI-generated music
GEMA emphasizes that rightsholders should receive compensation equivalent to what they would earn from human-created works, as AI-generated content derives from protected original works.
This framework faces potential challenges:
- Implementation difficulties with AI companies
- Regulatory compliance concerns
- Cross-border enforcement issues
The proposal comes amid the EU's implementation of the AI Act and ongoing copyright litigation against companies like Anthropic, Suno, Perplexity, and Udio. GEMA's approach represents one of the first comprehensive attempts to address AI music generation licensing.
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