@ArtistRights Newsletter 8/11/25: @DavidCLowery on Streaming, SX v. Sirius, AI the Cult and “Dual Use AI” Culture is Upstream of War

Save the Date! September 18 Artist Rights Roundtable in Washington produced by Artist Rights Institute/American University Kogod Business & Entertainment Program. Details at this link!

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Save the Date! September 18 Artist Rights Roundtable in Washington produced by Artist Rights Institute/American University Kogod Business & Entertainment Program. Details at this link!

Streaming Economics

@nickgillespie and @davidclowery: Streaming is a Regulated Monopoly (Reason Magazine/Nick Gillespie)

Spotify’s Royalty Threshold Is Conscious Parallelism Reshaping the Music Business—But Not in a Good Way (The Trichordist/Chris Castle)

SoundExchange v. SiriusXM

Did the Court Misread Congress? Rethinking SoundExchange v. SiriusXM Through the Lens of Legislative Design

Copyright Terminations Vetter v. Resnik

Controversial ruling on US termination right fulfills the intention of Congress, say creators (Complete Music Update/Chris Cooke)

Amicus Brief Supporting Cyril Vetter of Artist Rights Institute (David Lowery, Nikki Rowling), Blake Morgan, Abby North, and Angela Rose White (Chris Castle)

Cult of the AI Singularity

AI Frontier Labs and the Singularity as a Modern Prophetic Cult (MusicTech.Solutions/Chris Castle)

AI Czar David Sacks Shortcut to Nowhere: How the Seven Deadly Since Keep Him From Licensing Solutions

Dual Use AI

America Isn’t Ready for the Wars of the Future (Foreign Affairs/GEN Mark Milley and Eric Schmidt)

Spotify CEO Daniel Ek Named Chairman of Military AI Firm Following 600M Investment (Playy Magazine)

Eric Schmidt Is Building the Perfect AI War-Fighting Machine (Wired/Will Knight)

Souls for Sale: The Long Con Behind AI Weapons and Cultural Complicity (MusicTechPolicy/Chris Castle)

Eric Schmidt-led panel pushing for new defense experimentation unit to drive military adoption of generative AI(Defense Scoop/Brandi Vincent)

The Lords of War: Daniel Ek, Eric Schmidt and the Militarization of Tech (MusicTechPolicy/Chris Castle)

Who’s Really Fighting for Fans? Randy Nichols Comment in the DOJ/FTC Ticketing Consultation

The Department of Justice and Federal Trade Commission were directed by President Trump to conduct an investigation into ticket scalping pursuant to Executive Order 14254 “Combating Unfair Practices in the Live Entertainment Market.”

This led directly to both agencies inviting public comments on the state of the live event ticketing market—an industry riddled with speculation, opacity, and middlemen who seem to make money without ever attending a show. Over 4000 artists, fans, economists, state attorneys general, and industry veterans all weighed in. And the record reveals something important particularly regarding resellers: there’s a rising consensus that the resellers are engaged in some really shady practices designed for one purpose–to extract as much money as possible from fans and artists without regard to the damage it does to the entire artist-fan relationship.

First up is Randy Nichols comment which is an important starting place. Randy is a long-time artist manager and board member of NITO. He was the first person I met who conducted the necessary on-the-ground forensic investigation into just how blatantly resellers leveraged bots and other fraudster tools. I’ve summarized five key takeaways from his comment, but you really should read Randy’s thoughts in their entirety.

Scalper Bots and Browser Exploits Dominate Onsales

Nichols details how automated tools—including browser plugins and autofill scripts—allow scalpers to bypass ticket limits and jump queues during onsales. These tools operate faster than any human, making it nearly impossible for ordinary fans to purchase tickets at face value.

Speculative Ticket Listings Deceive Consumers and Manipulate the Market

Sellers often list tickets they don’t yet own, using predictive software to buy them later at lower prices. Nichols compares this to unregulated short selling in financial markets, emphasizing that it inflates prices and misleads buyers.

Deceptive URLs and Affiliate Networks Mislead Fans

Lookalike websites (e.g., with venue or tour names in the domain) are used to confuse consumers into thinking they’re buying from official sources. These are often linked to major secondary marketplaces through affiliate networks that obscure accountability.

Private Equity–Backed Ticket Loans Fuel Bulk Scalping

Nichols reveals how brokers access over $100 million annually in loans—some from firms like RCN Capital and Anytickets with ties to major ticketing executives—to fund high-volume speculative purchases. This weaponizes lending capital to crowd out fans during onsales.

Breaking Up Ticketmaster Won’t Solve Scalping

While acknowledging concerns about Live Nation/Ticketmaster’s dominance, Nichols warns that the private equity–driven secondary market is a separate and urgent problem. He calls for independent enforcement actions against scalpers, not just structural remedies for Ticketmaster.

FTC Cracks Down on Ticket Scalpers in Major BOTS Act Enforcement

The wheels of justice turn slowly, but they do turn.

In what appears to be a response to NITO’s complaint filed last year with FTC, pressure from Senator Marsha Blackburn and President Trump’s executive order on ticket scalping, Hypebot reports that the Federal Trade Commission is going after large-scale ticket resellers for violating the Better Online Ticket Sales (BOTS) Act (authored by Senators Blackburn and Richard Blumenthal). 

The enforcement action seeks tens of millions of dollars in damages and signals that federal regulators are finally prepared to tackle the systemic abuse of automated tools and deceptive practices in the live event ticketing market.

According to Hypebot, the FTC alleges that the companies used bots and a web of pseudonymous accounts to bypass ticket purchasing limits—snagging prime seats to high-demand concerts and reselling them at inflated prices on platforms like StubHub and SeatGeek. The case represents one of the largest BOTS Act enforcement efforts to date. 

“The FTC is finally doing what artists, managers, and fans have been asking for: holding scalpers accountable,” said Randy Nichols, artist manager for Underoath and advocate for ticketing reform. “This sends a message to bad actors that the days of unchecked resale are numbered.”

As Hypebot reports, this enforcement may just be the beginning. The case is likely to test the limits of the BOTS Act and could set new precedent for what counts as deceptive or unfair conduct in the ticket resale market—even when bots aren’t directly involved.

Read the full story via HypebotFTC Goes After Ticket Scalpers, Seeks Tens of Millions in Damages

@RickBeato on AI Artists

Is it at thing or is it disco? Our fave Rick Beato has a cautionary tale in this must watch video: AI can mimic but not truly create art. As generative tools get more prevalent, he urges thoughtful curation, artist-centered policies, and an emphasis on emotionally rich, human-driven creativity–also known as creativity. h/t Your Morning Coffee our favorite podcast.

Senator Cruz Joins the States on AI Safe Harbor Collapse— And the Moratorium Quietly Slinks Away

Silicon Valley Loses Bigly

In a symbolic vote that spoke volumes, the U.S. Senate decisively voted 99–1 to strike the toxic AI safe harbor moratorium from the vote-a-rama for the One Big Beautiful Bill Act (HR 1) according to the AP. Senator Ted Cruz, who had previously actively supported the measure, actually joined the bipartisan chorus in stripping it — an acknowledgment that the proposal had become politically radioactive.

To recap, the AI moratorium would have barred states from regulating artificial intelligence for up to 10 years, tying access to broadband and infrastructure funds to compliance. It triggered an immediate backlash: Republican governors, state attorneys general, parents’ groups, civil liberties organizations, and even independent artists condemned it as a blatant handout to Big Tech with yet another rent-seeking safe harbor.

Marsha Blackburn and Maria Cantwell to the Rescue

Credit where it’s due: Senator Marsha Blackburn (R–TN) was the linchpin in the Senate, working across the aisle with Sen. Maria Cantwell to introduce the amendment that finally killed the provision. Blackburn’s credibility with conservative and tech-wary voters gave other Republicans room to move — and once the tide turned, it became a rout. Her leadership was key to sending the signal to her Republican colleagues–including Senator Cruz–that this wasn’t a hill to die on.

Top Cover from President Trump?

But stripping the moratorium wasn’t just a Senate rebellion. This kind of reversal in must-pass, triple whip legislation doesn’t happen without top cover from the White House, and in all likelihood, Donald Trump himself. The provision was never a “last stand” issue in the art of the deal. Trump can plausibly say he gave industry players like Masayoshi Son, Meta, and Google a shot, but the resistance from the states made it politically untenable. It was frankly a poorly handled provision from the start, and there’s little evidence Trump was ever personally invested in it. He certainly didn’t make any public statements about it at all, which is why I always felt it was such an improbable deal point that it was always intended as a bargaining chip whether the staff knew it or not.

One thing is for damn sure–it ain’t coming back in the House which is another way you know you can stick a fork in it despite the churlish shillery types who are sulking off the pitch.

One final note on the process: it’s unfortunate that the Senate Parliamentarian made such a questionable call when she let the AI moratorium survive the Byrd Bath, despite it being so obviously not germane to reconciliation. The provision never should have made it this far in the first place — but oh well. Fortunately, the Senate stepped in and did what the process should have done from the outset.

Now what?

It ain’t over til it’s over. The battle with Silicon Valley may be over on this issue today, but that’s not to say the war is over. The AI moratorium may reappear, reshaped and rebranded, in future bills. But its defeat in the Senate is important. It proves that state-level resistance can still shape federal tech policy, even when it’s buried in omnibus legislation and wrapped in national security rhetoric.

Cruz’s shift wasn’t a betrayal of party leadership — it was a recognition that even in Washington, federalism still matters. And this time, the states — and our champion Marsha — held the line. 

Brava, madam. Well played.

This post first appeared on MusicTechPolicy

A New Twist in the AM Radio Debate: Why Tying AM Mandates to AMFA Is a Game-Changer #IRespectMusic

The latest twist in the long-running AM radio saga comes from a new alliance: cars and music. Automaker trade groups Alliance for Automotive Innovation, Consumer Technology Association, and Zero Emission Transportation Association are shoulder to shoulder with the musicFIRST Coalition and SoundExchange in urging Congress to link the “AM Radio in Every Vehicle Act” with the American Music Fairness Act (AMFA). If we’re going to mandate AM radios be placed in new cars then music played on those radios should pay the people who made that music. It’s unfair and fundamentally inconsistent to require one without the other, so broadcasters should pay artists.

What Is the American Music Fairness Act?

If you haven’t run across it yet, AMFA is bipartisan legislation sponsored by our champion Senator Marsha Blackburn in the Senate and our long-time ally Rep. Darrell Issa in the House of Representatives that would finally require AM/FM radio stations to pay performance royalties to recording artists and performers when their recordings are played over the air. Currently, the U.S. remains the only democracy that allows terrestrial radio to make billions from music without compensating performers.

Why Artists Get Left Out

As incredible as it may seem, under U.S. copyright law, terrestrial radio must pay songwriters and publishers—but not performers or sound recording rights holders. That means backup singers, session musicians, and producers receive zero compensation, even when their work drives–literally–billions in broadcast revenue. This is what allows the National Association of Broadcasters shillery to claim “we pay for music” and then try to pit artists against songwriters. That dog won’t hunt, but that never stops them from trying.

The musicFIRST Coalition, including SoundExchange and tons of artists and creators, has been front and center pushing Congress to close this loophole for years and we have been right there with them along with our friend Blake Morgan and his #IRespectMusic campaign.

 

“Mandating AM radio without addressing the performance royalty issue would perpetuate an inequity that denies hundreds of millions of dollars in compensation to countless recording artists every year. Congress should not pass a mandate for radio without ensuring appropriate royalties for artists… They deserve to have their hard work respected and valued with fair compensation — like they receive in every other industrialized country.”
SoundExchange CEO Michael Huppe


The Math on AMFA

  • U.S. radio plays over 240 million songs annually without compensating performers
  • The music industry could gain an estimated $200–300 million annually if Americans were paid for domestic and foreign broadcast plays 
  • Aligns U.S. copyright with global norms—terrestrial radio already pays performers in virtually every other developed nation.

What is to be done

If Congress is going to mandate AM radio in every car, it can’t ignore the rights of the very artists who create the content. By demanding performance royalties through AMFA, we can preserve public safety benefits while ensuring creators are paid for their work. This is a rare chance for Congress to get it right—fairness and infrastructure can go hand-in-hand.

If you believe artists deserve fairness when their music plays on the radio, now is the time to act:

  1. Sign the letter to Congress. The musicFIRST Action Center has made it easy—just a few clicks to add your name. 
  2. Call your Senator and Representative and tell them to support both:
    • American Music Fairness Act (H.R. 861 / S. 326)
    • AM Radio in Every Vehicle Act—(S. 315 / H.R. 979–but only inclusive of performance royalties
  3. Spread the word on social media with tags like #PassAMFA#FairPayForArtists#IRespectMusic

Historical Losses from Statutory Rates–Are you ready for CRB 5 and the New Frozen Mechanicals?

The red line is the actual mechanical rate in pennies (nominal rate) compared to the blue line which is the inflation-adjusted rate (real rate). Notice that during periods without a COLA adjustment like we won for physical and CDs in CRB 4 (aka Phonorecords IV), the blue line is less than the red line.

An important feature of this graph is that the blue line continues the downward slope until it is saved by an increase in rates followed by a cost of living adjustment or stair step increases (some of which were due to a COLA).

As soon as the COLA comes off, the downward slope returns, meaning the buying power of the statutory rate declines. This is to be expected due to inflation–the downward slope will be more pronounced in times of high inflation.

Notice that this places a blank space on the area of the graph between the red and blue lines. That blank space represents lost revenue due to a fixed rate that is not adjusted for inflation. It is theoretically and industrywide loss of revenue.

It would be possible for songwriters to make the same calculation for streaming if the Copyright Office were required to publish the results of the CRB’s streaming mechanical calculation. This would be much easier because there has never been a COLA for streaming mechanicals, although there clearly ought to be.

One place to start making that case might be to calculate the industrywide loss from the failure to adjust for inflation in the rates the government forces us to take.

@human_artistry Campaign Letter Opposing AI Safe Harbor Moratorium in Big Beautiful Bill HR 1

Artist Rights Institute is pleased to support the Human Artistry Campaign’s letter to Senators Thune and Schumer opposing the AI safe harbor in the One Big Beautiful Bill Act. ARI joins with:

Opposition is rooted in the most justifiable reasons:

By wiping dozens of state laws off the books, the bill would undermine public safety, creators’ rights, and the ability of local communities to protect themselves from a fast-moving technology that is being rushed to the market by tech giants. State laws protecting people from invasive AI deepfakes would be at risk, along with a range of proposals designed to eliminate discrimination and bias in AI. For artists and creators, preempting state laws requiring Big tech to disclose the material they used to train their models, often to create new products that compete with the human creators’ originals, would make it difficult or impossible to prove this theft has occurred. As the Copyright Office’s Fair Use Report recently reaffirmed, many forms of this conduct are illegal under longstanding federal law. 

The moratorium is so vague that it is unclear whether it would actually prohibit states from addressing construction of data centers or the vast drain on the power grid to implement AI placement in states. This is a safe harbor on steroids and terrible for all creators.

@JayGilbert Discusses Record Release Marketing Strategies

Our friend and long time music marketing consultant Jay Gilbert sits down with Chris Castle to discuss release planning and strategies on Part 3 of the Artist Rights Institute’s Record Release Checklist. You may have seen Jay on podcasts like Your Morning Coffee, Behind the Setlist (with Glenn Peoples) and Michael Brandvold’s Music Biz Weekly.

Jay discusses his excellent Release Planner and made a copy available for download on the Artist Rights Institute Artist Financial Education vertical. You can also listen to the podcast on The Artist Rights Watch podcast.

Don’t miss Parts 1 and 2 on getting your record ready with legal and business issues available on the Financial Education Vertical here and here and checklist for YouTube videos here.