US Copyright Fees Rise, AI Enters Piracy Report, Sony Presses Udio Over YouTube Training Data
How The Music Business Works - Issue #60
May 7, 2026
Welcome back to How The Music Business Works.
This week’s issue tracks how copyright access, AI training disputes, piracy enforcement, and capital flows are shaping the business of music. In the US, independent music groups are challenging higher registration fees that they say could limit enforcement options for smaller rightsholders.
AI remains central, with the USTR adding copyright concerns to its global piracy reporting, Sony pressing Udio over YouTube-sourced training data, and Anthropic supporters challenging publishers’ fair use theories. Meanwhile, April funding data shows catalog acquisition capital continuing to dominate music investment activity.
Independent groups oppose 43% US copyright registration fee hike
A coalition of ten music organizations has opposed the US Copyright Office’s proposed 43% average increase to copyright registration fees, arguing the change would price many independent creators out of the system. A2IM led the filing, joined by groups including the Artist Rights Alliance, Recording Academy, Songwriters of North America, Music Artists Coalition and Future of Music Coalition. The Copyright Office says the proposal reflects inflation since its 2020 fee study and expected future inflation. The coalition argues independent artists and labels have limited control over income from streaming, mechanicals and performance royalties. It also notes that registration is required for statutory damages, attorney’s fees and Copyright Claims Board access, making higher fees a potential barrier to copyright enforcement for smaller rightsholders.
Music industry welcomes AI language in USTR piracy report
The US Trade Representative’s latest Special 301 Report has added a short section on artificial intelligence, drawing support from the recorded music sector. The RIAA welcomed language saying the US supports legal frameworks for AI development that respect copyright and voluntary licensing regimes for copyrighted works. The annual report is used to flag countries whose IP protections concern US companies and creators. Music industry lobbyists have pushed for AI to be included as companies seek to use copyright exceptions in some jurisdictions for training data without licensing. The report also references India, where a working paper has raised concerns about statutory licensing and mandatory extended collective management for AI training. USTR says it will continue monitoring developments in that area.
April music industry funding reaches $2.84 billion, led by catalog capital
Digital Music News reported that publicly disclosed core music industry funding reached almost $2.84 billion in April 2026, following nearly $5 billion in the first quarter. The total came from DMN Pro’s Music Industry Funding Tracker and reflected core music raises only. Catalog acquisition financing drove the month’s activity, led by Primary Wave’s $2.23 billion fund, Chord Music’s $500 million asset-backed securitization and Avex Music’s $100 million tranche. DMN said the April total was up 438% from April 2025, though excluding Primary Wave’s raise the increase was 16%. The report also noted that round volume remains below earlier levels, with eight core and non-core rounds in April 2026 compared with 15 in April 2022. Outside the major catalog deals, only a small number of emerging music businesses secured capital during the month.
Sony Music and Udio dispute puts YouTube-sourced AI training data in focus
Udio has acknowledged obtaining audio data from YouTube for training as Sony Music continues its lawsuit against the AI music generator. In its answer to Sony’s amended complaint, Udio said it used audio from YouTube and acquired some training data through YT-DLP, described in the case as a stream-ripping tool. The dispute follows settlements and licensing agreements between Udio and Universal Music, then Warner Music, while Sony continues to litigate. In April, Judge Alvin Hellerstein rejected Udio’s dismissal request, finding Sony had plausibly alleged that YouTube used technological measures regulating access and that Udio circumvented them. The judge said the question of whether those measures qualify as DMCA access controls requires a fuller factual record.
Anthropic supporters challenge music publishers’ AI fair use arguments
Technology trade groups, campaign organizations and law professors have filed in support of Anthropic in its copyright dispute with music publishers ABKCO, Concord and Universal Music Publishing. The filings argue that AI training qualifies as fair use under US law and ask the court to reject the publishers’ infringement claims. The Electronic Frontier Foundation cautioned against expanding copyright protections based on predictions about AI’s effect on creativity, drawing a comparison to earlier technology disputes. Law professors Rebecca Tushnet and Edward Lee argued that the publishers’ market dilution theory would improperly extend copyright protection to broader genres. Music industry groups and other copyright sectors have previously supported the publishers, arguing that for-profit AI companies should not copy human-authored works without permission.