SESAC and IMRO Partner on Digital Rights, PRS Wins Cinema Royalty Ruling, and Denmark Acts on AI Deepfakes

How The Music Business Works - Issue #83

October 15, 2026

Welcome back to How the Music Business Works.

YouTube Music is now labeling AI-generated tracks, joining Apple Music, Spotify, TIDAL, and Deezer in a growing industry push for transparency, though it has yet to clarify whether labeled content will be treated differently in recommendations or royalties. Denmark is taking things a step further, introducing legislation that would give performers the legal right to block unauthorized digital replicas of their voice or likeness, with protections expected by early 2027. 

Warner Music has filed a copyright infringement suit against Ray-Ban and Oakley parent EssilorLuxottica over the unauthorized use of more than 427 songs in social media posts, seeking over $64 million in damages, continuing a broader wave of actions the major labels have pursued against brands using music commercially without a license. 

The UK Copyright Tribunal ruled in favor of PRS For Music in its long-running dispute with the UK Cinema Association, updating a tariff that had not been revised in over 20 years. 

And Ireland’s IMRO and SESAC have announced a new international partnership for the administration of writer-share online performing rights royalties across multiple territories.

Here’s the news.

SESAC and IMRO Unveil International Digital Rights Partnership

Ireland’s IMRO and US performing rights organization SESAC have announced a new international partnership under which IMRO will administer SESAC’s writer-share online performing rights royalties across multiple territories. IMRO will handle usage data processing, royalty allocation, reporting, and distribution across eligible digital services and markets, while publisher-share royalties will continue to be administered separately under existing arrangements, including through the ICE framework where applicable. The deal reflects a growing trend of collecting societies expanding their international administration capabilities through bilateral agreements rather than building those infrastructures independently. IMRO CEO Victor Finn pointed to the partnership as recognition of the organization’s strength in international digital rights administration, while SESAC’s president of international Alexander Wolf emphasized the importance of ensuring affiliated songwriters and composers receive effective representation as the global digital music market continues to evolve. Both organizations framed the agreement as a natural fit given their shared focus on accuracy, transparency, and creator service.

Copyright Tribunal backs PRS For Music in Cinema Licensing Dispute

The UK Copyright Tribunal has ruled in favor of PRS For Music in its dispute with the UK Cinema Association over the licensing tariff for music used in cinemas. The previous tariff had not been updated in over 20 years, and the Tribunal accepted PRS’s argument that films are using significantly more music now than in 2005. The updated tariff simplifies the royalty structure, moving from a dual system to a single fee based on admissions rather than ticket revenue. The rate rises from 7.33p to 7.9p per cinemagoer, the annual minimum fee per screen increases from £75 to £131.50, and concert screening royalties rise from 3% to 4% of ticket and booking fee revenue. Both charges will increase annually with inflation from January 1, 2025, and the higher rates will apply retroactively to music use dating back to July 1, 2024. The new terms will take effect once finalized in consultation with the UKCA and approved at a further Tribunal hearing.

Denmark Moves to Protect Performers Against AI Deepfakes with New Digital Replica Right

Denmark’s culture minister Zenia Stampe has introduced legislation in parliament that would give performers and individuals the right to block unauthorized digital replicas of their voice or likeness. The bill amends Danish copyright law to make it illegal to publicly share realistic AI-generated imitations of a person without their consent, covering both AI deepfakes and imitations created through traditional digital editing tools. Exceptions exist for caricature, parody, and criticism, though those exceptions do not apply where the imitation constitutes misinformation that could cause serious harm. The proposal builds on previous efforts that stalled following a change of government earlier this year, and Stampe hopes the protections will take effect by early 2027. Beyond blocking unauthorized use, the legislation could also create a commercial licensing opportunity for artists who wish to permit the use of their voice or likeness under controlled terms. Denmark joins the US, where similar digital replica right proposals have been introduced in Congress, in what could become an influential model for other countries navigating the same questions around AI and identity protection.

YouTube Music Begins Labeling AI-Generated Tracks

YouTube Music has started rolling out labels for songs created primarily using generative AI, with the tags appearing directly on the player page and linking to additional information. The platform will use both partner declarations and its own detection tools to identify AI-generated content, with music partners able to designate tracks as “Fully Gen AI,” “Partly Gen AI,” or “No Gen AI” when delivering content through DDEX or CSV templates. The labels will also expand to the main YouTube app. The move follows similar steps from Apple Music, Spotify, TIDAL, and Deezer, each taking a different approach to AI transparency. YouTube has not specified whether labeled tracks will be treated differently in recommendations or royalty payouts, leaving that question open as the broader industry continues to work out the commercial and editorial implications of AI-generated music at scale.

Warner Music Sues EssilorLuxottica Over Unauthorized Music Use on Social Media

Warner Music Group has filed a copyright infringement lawsuit against multiple subsidiaries of eyewear giant EssilorLuxottica, including Ray-Ban, Oakley, Eye Buy Direct, and Costa Del Mar, over the alleged unauthorized use of more than 427 recordings and compositions in Instagram and TikTok posts. The suit, filed in New York federal court, alleges the brands used popular songs without obtaining standalone commercial licenses, despite warnings from the platforms themselves and two cease-and-desist letters sent in December 2025 and May 2026. Tracks by Dua Lipa, Charli XCX, the Ramones, the Black Keys, and Van Halen are among those cited. WMG is seeking maximum statutory damages of $150,000 per work, putting the total sought at over $64 million. The case is part of a broader wave of social media copyright enforcement actions the major labels have pursued against brands, restaurants, sports teams, and influencer-driven campaigns that use licensed music commercially without authorization.

Random Ramblings:

• Out With the New, in With the Old?: How the Grammys Should Recognize Revived Hits.
• Can We Sue Our Way to AI Control?
• How Music Tourism Is Becoming a Growth Lever.
• When you control your IP, you control your destiny.