Sony Music Entertainment (SME) has led a $16 million Series A funding round in Vermillio, an AI licensing and monetization platform specializing in authenticated AI solutions.

Vermillio's flagship product, TraceID, helps rightsholders identify, license, and monitor generative AI content that uses their protected works. The platform has already demonstrated success through several key partnerships:

• Collaboration with Sony Music on David Gilmour's AI-powered Metallic Spheres In Colour project
• Partnership with Sony Pictures for a Spider-Man AI-animation campaign, tracking 1.5 million fan creations
• Joint venture with Pocket.watch for Ryan's World, enabling customized merchandise creation through AI

The funding round also included participation from DNS Capital, a Chicago-based family office with previous investments in AI startups and children's media platforms.

Dennis Kooker, SME president of global digital business, emphasized the company's commitment to protecting IP while exploring new commercial opportunities in AI: "Prioritizing proper consent, clear attribution and appropriate compensation for professional creators is foundational to unlocking monetization opportunities in this space."

The investment comes as major music companies increasingly focus on AI technology integration. Universal Music Group recently partnered with ProRata.ai, which secured a $25 million Series A funding and is preparing to launch its AI search engine, Gist, in 2025.

Vermillio plans to use the funding to enhance its protection of talent, record labels, and studios in the rapidly evolving AI sector while developing new commercial applications for AI technology in the music industry.

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