Music Business: Labels, Royalties and AI Rules — 2026-09-08
A federal court issued a mixed ruling in the Spotify-Mechanical Licensing Collective (MLC) royalty dispute, preserving the streamer’s audiobook bundle structure for now. Simultaneously, the Recording Industry Association of America (RIAA) reported a 6.9% growth in recorded music revenues for the first half of 2026, driven by a surge in CD sales. Meanwhile, the US Department of Justice backed AI companies in copyright cases, while major labels collectively challenged Anthropic’s Claude model.
Music Business: Labels, Royalties and AI Rules — 2026-09-08
Top developments
Federal Court Issues Mixed Ruling in Spotify-MLC Royalty Battle
On September 7, 2026, a federal court in New York delivered a mixed verdict in the ongoing legal dispute between Spotify and the Mechanical Licensing Collective (MLC). The ruling leaves Spotify’s victory regarding its "bundle" subscriptions (which combine music and audiobooks) intact for the time being, though the MLC also secured procedural wins that keep the broader mechanical royalty fight alive. This decision is critical for Spotify’s pricing strategy and royalty payout structures, as it temporarily validates the bundling model that has been contested by songwriters and publishers.
RIAA Reports 6.9% Revenue Growth in H1 2026; CD Sales Surge
The Recording Industry Association of America (RIAA) reported this week that sales of recorded music across all formats grew by 6.9% in the first six months of 2026 compared to the same period in 2025. A notable driver of this growth was a significant surge in CD sales, bucking long-term trends of physical format decline. These figures provide a positive backdrop for major labels like Universal, Sony, and Warner, suggesting that despite AI controversies and streaming saturation, consumer spending on music remains robust.
DOJ Backs AI Companies in Copyright Cases; Majors Challenge Anthropic
In a move with significant implications for AI licensing negotiations, the US Department of Justice (DOJ) has filed statements backing AI companies in ongoing copyright cases. Concurrently, all three major record labels—Universal, Sony, and Warner—have taken legal action against Anthropic regarding its Claude AI model. This dual development highlights the intensifying legal front in the AI music debate: while the government leans toward fair-use defenses for AI training, rights holders are aggressively pursuing injunctions and damages against specific large language models used for creative generation.
Local view
German Media Report GEMA’s Victory Against Suno
German press continues to analyze the impact of the Munich Regional Court’s July 31 ruling, which found that Suno’s use of copyrighted songs violated German and US copyright laws. Bonedo and Tagesschau highlight that this precedent sets a high bar for AI music generators operating in Europe, requiring explicit licensing for training data. The coverage emphasizes that this is not just a local victory for GEMA members but a signal to global AI firms that European courts will enforce strict copyright compliance, potentially influencing future licensing deals beyond Germany.
Context & numbers
- Global Revenue Growth: Global recorded music revenues grew 6.4% to reach $31.7 billion in 2025, according to IFPI data released earlier this year, marking the eleventh consecutive year of growth.
- Spotify Metrics: As of Q1 2026, Spotify reported 761 million monthly active users and 293 million premium subscribers, with quarterly revenue hitting €4.533 billion.
- Streaming Dominance: Streaming revenues surpassed $22 billion in 2025, representing 69.6% of total recorded music earnings.
On the radar
- Spotify AI Label Rollout: The new "AI Persona" label, announced in August, is expected to begin appearing on Spotify profiles next month (September/October 2026). This will automatically exclude such artists from recommendation algorithms, fundamentally changing how AI-generated music reaches listeners.
- Pending AI Rulings: Industry analysts are watching for rulings expected in late 2026 or early 2027 in other major AI copyright suits, which could reshape licensing terms industry-wide regardless of the specific outcomes.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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