In today's CMU Daily: Apple/Epic battle enters skirmish mode; CMU + FXR look at CMO data challenges at Eurosonic; GESAC welcomes EU streaming reform report adoption; Chinese judge gives more detail on generative AI copyright protection ruling; EMMA music managers organisation unveils pan-European survey findings.

Also today: Charlie Phillips, interim CEO of Ivors Academy, talks music creators' rights, and growth of the Ivor Novello awards.

CMU's virtual masterclass Music + AI In 2024 takes place on Tuesday 20 Feb. Attendees can access the session live on Zoom and then on-demand via the CMU learning platform. Click here for information on all of the upcoming CMU online masterclasses and to book your place.

Apple changes App Store rules following Supreme Court announcement, but Epic vows more legal action

Apple yesterday announced a change to its App Store rules in the US after the country's Supreme Court declined to consider its dispute with Fortnite maker Epic over in-app payments. However, Epic argues that the change being made constitutes "bad-faith compliance" with an earlier court order.

The gaming company's CEO, Tim Sweeney, wrote on Twitter that Apple's rule change "totally undermines” the earlier injunction, which was issued in 2021, and as a result, "Epic will contest Apple's bad-faith compliance plan in district court".

Epic, like Spotify, has long criticised Apple's rules regarding in-app payments on iOS devices. Those rules mean that, with some apps, the app maker is obliged to use Apple's transactions platform to take in-app payments, which charges a 15-30% commission. It is also not allowed to sign-post alternative payment options, such as on the app maker's own website.

For companies like Spotify, being unable to take in-app payments without paying commissions to Apple and Google makes it harder to sell premium subscriptions. And, more importantly, it restricts their ability to add more pay-as-you-go features, which is important for Spotify's ambitions in the audiobook space, and for the development of any in-app superfan experiences.

There has been plenty of litigation and lobbying by app makers like Epic and Spotify seeking to force Apple to change its rules, on the basis they are anti-competitive. Epic sued Apple through the courts in California. Judge Yvonne Gonzalez Rogers mainly sided with Apple, concluding that the tech giant's rules were compliant with US competition law.

However, she also concluded that the rule stopping the sign-posting of other payment options - often called the anti-steering rule - was a violation of Californian law. As a result she issued an order stating that that rule should be abolished.

Both Epic and Apple took the dispute to appeal, ultimately to the US Supreme Court, which yesterday formally declined to consider the case. That development means the judgement that Apple's rules are compliant with US law stays in place, but so does the order to allow all app makers to sign-post alternative payment options.

As a result, Apple announced changes to its rules yesterday, confirming that - in the US - the sign-posting of alternative payment options within iOS apps is now allowed. Except, that concession comes with some restrictions. And, most importantly of all, Apple wants to charge a 12% to 27% commission on any purchases that result from people linking to a website from an iOS app.

Continues Sweeney: "Apple has introduced an anticompetitive new 27% tax on web purchases. Apple has never done this before and it kills price competition. Developers can't offer digital items more cheaply on the web after paying a third-party payment processor 3-6% and paying this new 27% Apple tax".

Given Sweeney’s pledge to contest this new “Apple tax”, we can expect a new round of litigation between Epic and Apple.

Despite Apple's moves to mitigate the impact of the Californian court order, the tech giant is slowly relaxing its rules around in-app payments around the world as a result of regulator intervention, legal action and political pressure. As is Google, which enforces similar if slightly less draconian rules on in-app purchases on Android devices.

CMU AT EUROSONIC

Hands on with CMO data: value, transparency and user experience

Lots of people talk about the importance of data in the music business - but sometimes getting hold of that data and making sense of it isn’t so straightforward.

CMU’s Chris Cooke will host a panel discussion at Eurosonic tomorrow, Thursday 18 Jan, at 10.30-11.30am CET looking at the current state of CMO data in multiple territories, as well as how creators and their teams should access and utilise that data to identify missing money, spot problems and add value.

Following on from a MusicAIRE funded research project and whitepaper produced by Amsterdam-based technology company FXR in conjunction with CMU, the panel will explore some of the strategies and best practices highlighted within that research, as well as helping the wider communities of songwriters, artists and managers be aware of some of the hidden pitfalls they may encounter when working with data from their CMO partners.

Speakers include: Hanne Valckenaers, Musickness; Henry Marsden, ATM Catalog Management; Tjeerd Bomhof, FXR; Willemijn May, singer-songwriter.

Read the whitepaper at fixingmusicdata.com

Full Time Hobby Music // D2C Marketing Assistant (London)

terrible* // D2C Customer Service Representative (London)

terrible* // Logistics & Production Assistant (London)

Snapper Music // Press & Promo Coordinator (London)

Como No & La Linea // Director (London/Hybrid)

UK Music // Chief Executive (London/Hybrid)

Deviate Digital // Digital Marketing Assistant (London)

ONE LINERS

UK Music Diversity Survey, 9lives, Future Utopia + more

DEALS

PULSE Records has signed 9lives. His new single ‘Multimillionaire’ featuring Trippie Redd and Odetari is out on Friday. “I’m super excited to have the backing of PULSE Records”, says the rapper. “Their expertise and knowledge in my corner will significantly boost the journey that I’m on as an artist. I can’t wait to get started with them on this next chapter of my career!”

Artist management company Perfect Havoc has signed Stephani B. The producer is already signed to the company’s record label, releasing her debut single ‘Sober (La Da Dee)’ in November. “Steph is a prodigious artist - a singer and songwriter too - and is the perfect match for us with her strong work ethic, passion and drive”, says PH co-founder Robert Davies. “Steph has built an impressive social media presence over the last few years, and we are looking forward to growing the Stephani B brand further across all areas”.

INDUSTRY PEOPLE

UK Music has launched its 2024 Workforce Diversity Survey, tracking diversity and inclusion in the music business. “We need this data so we can identify where we are doing well and where we could improve”, says interim CEO Tom Kiehl. “To get quality information we need people from across the industry and all over the UK to fill out the survey - so I urge everyone who can to take part and share with your colleagues as well”. Music professionals are invited to fill out the survey here.

PUBLISHERS

Ninja Tune’s publishing arm Just Isn’t Music has joined IMPEL, which helps independent music publishers to license and administrate their digital rights. “It’s exciting to see that more and more publishers like Just Isn’t Music are putting their confidence, repertoire and expertise behind the IMPEL collective”, says IMPEL CEO Sarah Williams. “We are so much more effective when we work together and, as the digital business grows in importance, we are able to deliver better and better results to our members. Not just in terms of results right now but also in terms of our growth strategy for the future”.

RELEASES

Future Utopia will release new album ‘Django’s High’ - produced by Kasabian’s Sergio Pizzorno - on 12 Jul. Out today is new single ‘Looking For A Way Out (Of Del Rio)’.

Kim Gordon will release her second solo album ‘The Collective’ on 8 Mar. Out now is new single ‘Bye Bye’.

The Dandy Warhols have released new single ‘Danzig With Myself’ featuring Pixies’ Frank Black. The track is taken from new album ‘Rockmaker’, which is set for release on 15 Mar.

Chelsea Wolfe has released new single ‘Everything Turns Blue’. Her new album ‘She Reaches Out To She Reaches Out To She’ is out on 9 Feb.

Cassyette has announced that she will release her debut album ‘This World Fucking Sucks’ on 23 Aug. That’s quite a way off, but today you can listen to two new singles ‘Why Am I Like This?’ and ‘Ipecac’.

Porij have announced that they will release their debut album ‘Teething’ on 26 Apr. Out now is new single ‘My Only Love’.

Khruangbin will release new album ‘A La Sala’ on 4 Apr. Out now is new single ‘A Love International’.

Persher - aka Blawan and Pariah - have released new single ‘Medieval Soup From The Milkbar’. The track is taken from new album ‘Sleep Well’, which is out on 23 Feb.

The Boxer Rebellion have released new single ‘A Man As Alive As The City’. The track is taken from new EP ‘Open Arms’, which is out on 14 Feb.

Devon Welsh - formerly Majical Cloudz - will release new album ‘Come With Me If You Want To Live’ on 15 Mar. Out now is new single ‘You Can Do Anything’.

The year ahead: Ivors Academy

As we head into 2024, CMU has been sitting down with the bosses of many of the music industry’s trade organisations to talk about their work, the key challenges faced by their members, and what to expect in the year ahead.

Ivors Academy interim CEO Charlie Phillips discusses the organisation’s work to champion music creators’ rights, the growth of the Ivor Novello Awards, and the key challenges facing members.

GESAC welcomes European Parliament's adoption of report calling for music streaming reforms

GESAC has welcomed a vote in the European Parliament today adopting a report published last year by its culture committee that calls for reforms in the music streaming market. Gernot Graninger, President of the pan-European grouping for song right collecting societies, says the vote “sends a strong signal of recognition and understanding of the needs of creators".

The report, spearheaded by MEP Ibán García Del Blanco, reviews the various issues that have been raised by artists and songwriters with the music streaming business model. That includes how streaming revenues are shared between different stakeholders, as well issues around data and transparency, and concerns about algorithms and stream manipulation.

It calls on the European Commission to assess the impact of the music streaming business model - and contractual practices in the music industry - on “cultural diversity and the principle of appropriate and proportionate remuneration for authors and performers".

That demand could result in initiatives being set up at an EU level similar to those instigated by the French and UK governments, seeking industry-led voluntary agreements to address the concerns and grievances of artists and songwriters. Or, if no such agreements can be reached, copyright law reforms might be considered to strengthen creator rights.

Indeed, the report outright states that the Commission should "monitor and encourage progress in this regard and consider appropriate policy proposals should voluntary stakeholder initiatives fail to produce meaningful solutions".

GESAC's General Manager Véronique Desbrosses adds: "The European Parliament clearly stands on the side of authors by showing its support to their legitimate request for fairness. The music streaming market needs to properly reward those who are at the core of its success and reach the high standards of cultural diversity that Europe expects”.

Chinese judge discusses ruling that granted AI-generated image copyright protection

A Chinese judge has commented on a decision made by a court in China last year that an artwork created using generative AI should enjoy copyright protection. The work in question was created using Stability AI's text-to-image tool Stable Diffusion.

According to the South China Morning Post, judge Zhu Ge said during a lecture last week that the ruling aimed to encourage people to use AI tools as part of the creative process, adding that if no AI-generated works are granted copyright protection, "this would deal a blow to the industry”.

While there has been much public debate about the copyright obligations of AI companies, another question posed by generative AI is whether or not content generated by such technologies should enjoy copyright protection.

A small number of copyright systems do provide protection for AI-generated works. UK copyright law includes default ownership rules for "computer-generated works", suggesting that those works are protected, although some have debated whether AI-generated content would meet the necessary originality requirements.

However, most copyright systems don't currently protect AI-generated works, and many people argue that that is the right approach, because copyright is meant to encourage and protect human creativity.

In the US, where works need to be registered to get full protection under copyright law, the US Copyright Office has declined to register entirely AI-generated content. However, it has said that AI-assisted works - where human creators use AI tools as part of their creative process - probably can be registered.

Which then poses the question of how much human involvement there needs to be for a work to be AI-assisted rather than AI-generated. When launching its consultation on AI last year, the Copyright Office stated: “Although we believe the law is clear that copyright protection in the United States is limited to works of human authorship, questions remain about where and how to draw the line between human creation and AI-generated content”.

In the case in China, the process the creator of the AI-generated image had gone through was considered. He had provided numerous prompts and repeatedly adjusted the parameters in order to generate a picture which reflected his “aesthetic choice and personalised judgement”. It may be that had the image come from a single short prompt, the court would not have granted copyright protection.

The copyright status of the image was considered by the Beijing Internet Court after the creator sued a blogger who published it without permission. While in her ruling Zhu Ge said the copyright status of AI-generated works should be judged on a case-by-case basis, in her lecture she added that she hoped her ruling last year could serve as a reference in future disputes.

CMU GUIDE: AI + MUSIC

Artificial intelligence + the music business: CMU's guide to (nearly) everything that mattered in 2023

There was a lot of discussion in 2023 within the music community about how AI will impact on music creation, music marketing, and the music business more generally.

There are clearly opportunities created by AI, and many ways that AI technologies will enhance the business.

An increasing number of music creators and music companies are exploring and identifying way to capitalise on those opportunities, and figuring out which AI products and services may offer ways to enhance their work.

Read CMU's (very) deep dive guide to the deals, disputes and debates, lawsuits and lobbying, and innovation and exploration that informed the conversation.

Pan-European manager survey puts spotlight on mental health, gender imbalance and the streaming model

A new report from the European Music Managers Alliance based on a survey of more than 350 artist managers across Europe identifies mental health, the gender imbalance and the streaming business model as key areas of concern, where more work should be done by the sector to facilitate or lobby for change.

"This groundbreaking research will help EMMA and the wider industry better understand the barriers faced by music managers across Europe", says Jess Partridge, Executive Director of the pan-European group for artist managers. "These findings will empower EMMA to strengthen and connect the music management sector, foster diversity and enhance managers' capacities".

The research highlighted that music management is primarily led by freelancers and small businesses. 49.1% of those surveyed are sole traders, while 45% work for companies with no more than five employees. Most managers, 60.6% of those surveyed, make money by charging their clients a commission.

Given the size of the companies and the intensive role of management, most managers work with a relatively small number of artists at any one time. The median number of artists that respondents currently manage is three, while 78.3% had a roster of five or fewer artists. A very small percentage - just 1.9% - had rosters of more than 20 acts.

When asked about the most important skills required for working in management, respondents listed protecting the health and well-being of clients, accounting and financial planning, and legal and contractual negotiation. The top three challenges for individual managers were finance, time management and networking.

As for challenges facing the sector at large, better access to mental health resources for both managers and artists was identified as "imperative", with the report stating that "increased partnership across the industry to support the mental health and wellbeing of creatives and industry professionals is necessary".

More work is also required to address the gender imbalance in the sector. Although the majority of respondents (51.9%) were women, female managers are more likely to earn less. 51.5% of female respondents said they reside in the lowest income categories, compared to 27.1% of male respondents.

Many of those surveyed also believe that the streaming business model should be reformed to the benefit of artists and songwriters, with support for shifting to a user-centric system for royalty payments and legislation to force fairer remuneration for creators.

One of the managers quoted in the report, Marie Dimberg of Stockholm-based Dimberg Jernberg Management, says: “Over the three decades that I’ve been a manager I’ve seen the music industry go through several seismic changes.

"At any given time, we handle hundreds of moving parts and complex issues, alongside the mental health and wellbeing of our artists", she goes on. "It’s very easy to put yourself last, and to overlook both your own needs as well as the demands of your own business”.

The EMMA report will be discussed at the Eurosonic conference in Groningen tomorrow, 18 Jan, at 1.30pm. You can download the report here.