Music Business: Labels, Royalties and AI Rules — 2026-09-10
This week, a federal court in New York issued a mixed ruling in the mechanical royalty dispute between Spotify and The Mechanical Licensing Collective (MLC), leaving the streamer's audiobook bundle victory temporarily intact. Meanwhile, the US Department of Justice filed statements supporting AI companies in copyright cases, while all three major record labels (Universal, Sony, Warner) jointly sued Anthropic over the training of its Claude AI model.
Music Business: Labels, Royalties and AI Rules — 2026-09-10
Top developments
Federal Court Issues Mixed Ruling in Spotify-MLC Royalty Battle
On September 7, 2026, a federal court in New York handed down a mixed ruling in the ongoing legal battle between Spotify and the Mechanical Licensing Collective (MLC) regarding mechanical royalties and "bundle" subscriptions. The court left Spotify’s victory on its audiobook bundle model intact for now, though the fight is not over. This decision is critical for the streaming ecosystem, as it influences how mechanical royalties are calculated for bundled services, directly impacting publisher payouts and Spotify’s cost structure
DOJ Supports AI Companies; Majors Sue Anthropic
In a significant shift for AI copyright litigation, the US Department of Justice (DOJ) filed statements backing AI companies in recent copyright cases, arguing that fair use principles may apply to AI training. Concurrently, Universal Music Group, Sony Music, and Warner Music Group have collectively taken legal action against Anthropic, alleging that the AI startup copied song lyrics to train its chatbot, Claude. These developments highlight the intensifying legal tug-of-war between tech innovators and content creators, with the outcome likely to reshape licensing frameworks for generative AI
RIAA Reports 6.9% Growth in Recorded Music Revenues for H1 2026
The Recording Industry Association of America (RIAA) reported that sales of recorded music in all formats grew by 6.9% in the first six months of 2026 compared to 2025. The report highlighted a notable surge in CD sales, contributing to the overall revenue growth. This data underscores the resilience of physical media and the continued expansion of the recorded music market, providing a positive backdrop for label financial performance despite broader industry challenges
German Court Rules Suno’s Training Violated Copyright
On September 8, 2026, German media reported that the Munich Regional Court had ruled against AI music generator Suno, stating that its training process violated German and US copyright laws. The court found that Suno’s use of copyrighted works to train its models constituted infringement rather than fair use. This ruling, initially delivered in late July but widely discussed this week, sets a precedent in Europe and increases the licensing risk for AI music companies operating globally
Local view
German media outlets such as Bonedo and Tagesschau have heavily covered the Munich court’s decision against Suno, framing it as a major victory for GEMA (the German collecting society) and a warning to other AI firms. The coverage emphasizes that unlicensed use of copyrighted songs for AI training is not permissible under current German law, potentially forcing AI companies to seek explicit licenses from rights holders like GEMA members
Context & numbers
- H1 2026 Revenue Growth: Recorded music revenues grew by 6.9% year-over-year in the first half of 2026, according to the RIAA.
- Spotify User Base: As of Q1 2026, Spotify reported 761 million monthly active users and 293 million Premium subscribers.
- Global Revenue Context: While specific H1 2026 global figures are emerging, the IFPI Global Music Report 2026 previously noted that 2025 global revenues reached $31.7 billion, marking the eleventh consecutive year of growth.
On the radar
- Suno v6 Launch: AI music generator Suno has launched version 6, which includes partnerships with Warner Music and BMG for licensed material, though it notably excludes Universal, Sony, and GEMA catalogs. This split in licensing strategy highlights the fragmented approach to AI integration among major rights holders.
- Anthropic Litigation: Watch for further procedural updates in the joint lawsuit by UMG, Sony, and Warner against Anthropic, which could set key precedents for text-based AI training data.
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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