Keith walks us through how audits actually work, contract limitations on audit rights, where discrepancies tend to surface, and why leverage often matters more than contract language. After decades in the field, Keith has seen where the money goes and where it doesn’t. This conversation cuts through the theory and gets into how audits really work, where the gaps are, and why audit rights only matter if you can enforce them.
Artist Rights Roundtable on AI and Copyright: Coffee with Humans and the Machines
Join the Artist Rights Institute (ARI) and American University’s Kogod’s Entertainment Business Program for a timely morning roundtable on AI and copyright from the artist’s perspective. We’ll explore how emerging artificial intelligence technologies challenge authorship, licensing, and the creative economy — and what courts, lawmakers, and creators are doing in response.
This roundtable is particularly timely because both the Bartz and Kadrey rulings expose gaps in author consent, provenance, and fair licensing, underscoring an urgent need for policy, identifiers, and enforceable frameworks to protect creators.
🗓️ Date: September 18, 2025 🕗 Time: 8:00 a.m. – 12:00 noon 📍 Location: Butler Board Room, Bender Arena, American University, 4400 Massachusetts Ave NW, Washington D.C. 20016
🅿️ Parking map is available here. Pay-As-You-Go parking is available in hourly or daily increments ($2/hour, or $16/day) using the pay stations in the elevator lobbies of Katzen Arts Center, East Campus Surface Lot, the Spring Valley Building, Washington College of Law, and the School of International Service
Hosted by the Artist Rights Institute & American University’s Kogod School of Business, Entertainment Business Program
🔹 Overview:
☕ Coffee served starting at 8:00 a.m. 🧠 Program begins at 8:50 a.m. 🕛 Concludes by 12:00 noon — you’ll be free to have lunch with your clone.
🗂️ Program:
8:00–8:50 a.m. – Registration and Coffee
8:50–9:00 a.m. – Introductory Remarks by KOGOD Dean David Marchick and ARI Director Chris Castle
9:00–10:00 a.m. – Topic 1: AI Provenance Is the Cornerstone of Legitimate AI Licensing:
Speakers:
Dr. Moiya McTier, Senior Advisor, Human Artistry Campaign
Ryan Lehnning, Assistant General Counsel, International at SoundExchange
The Chatbot
Moderator: Chris Castle, Artist Rights Institute
10:10–10:30 a.m. – Briefing: Current AI Litigation
Speaker: Kevin Madigan, Senior Vice President, Policy and Government Affairs, Copyright Alliance
10:30–11:30 a.m. – Topic 2: Ask the AI: Can Integrity and Innovation Survive Without Artist Consent?
Speakers:
Erin McAnally, Executive Director, Songwriters of North America
Jen Jacobsen, Executive Director, Artist Rights Alliance
Josh Hurvitz, Partner, NVG and Head of Advocacy for A2IM
Kevin Amer, Chief Legal Officer, The Authors Guild
Moderator: Linda Bloss-Baum, Director, Business and Entertainment Program, KOGOD School of Business
11:40–12:00 p.m. – Briefing: US and International AI Legislation
Speaker: George York, SVP, International Policy Recording Industry Association of America
On August 22, 2025, the Artist Rights Institute, together with music publisher Abby North, filed joint comments with the U.S. Copyright Office as part of the agency’s ongoing five-year redesignation review of the Mechanical Licensing Collective (MLC). The comments memorialize an ex parte meeting with senior Copyright Office attorneys and stress that this redesignation process must not become a perfunctory exercise. Instead, it should serve as a meaningful opportunity to hold the MLC accountable for its statutory obligations.
The filing underscores that Congress deliberately gave the Copyright Office broad regulatory oversight because the MLC was established as an experiment under the Music Modernization Act. After five years, the evidence points to serious deficiencies: continuing metadata errors, lack of access to bulk matching tools for rightsholders, opaque governance decisions, and unresolved questions about audits and litigation. Most strikingly, the MLC’s unilateral investment of unmatched royalties in the securities markets—totaling more than $1.2 billion on the MLC’s latest tax return—raises concerns about statutory authority and fiduciary duties.
The joint comments argue that interest on unmatched royalties was intended by Congress as a penalty on licensees for failure to timely match and pay, not as a windfall for the MLC itself. By adopting an unauthorized investment policy, the MLC risks stepping outside its mandate, exposing its officers and directors to fiduciary liability.
To restore transparency and trust, the Institute and Ms. North propose clear regulatory reforms: conditional redesignation tied to performance benchmarks, publication of vendor match rates, real-time disclosure of governance actions, clarified metadata responsibilities, and monthly reporting of investment holdings. These reforms would align the U.S. system with international best practices and protect songwriters whose livelihoods depend on fair and accurate royalty distributions.
🎙️ Artist Rights Roundtable on AI and Copyright: Coffee with Humans and the Machines
📍 Butler Board Room, Bender Arena, American University, 4400 Massachusetts Ave NW, Washington D.C. 20016 | 🗓️ September 18, 2025 | 🕗 8:00 a.m. – 12:00 noon
Hosted by the Artist Rights Institute & American University’s Kogod School of Business, Entertainment Business Program
🔹 Overview:
Join the Artist Rights Institute (ARI) and Kogod’s Entertainment Business Program for a timely morning roundtable on AI and copyright from the artist’s perspective. We’ll explore how emerging artificial intelligence technologies challenge authorship, licensing, and the creative economy — and what courts, lawmakers, and creators are doing in response.
☕ Coffee served starting at 8:00 a.m. 🧠 Program begins at 8:50 a.m. 🕛 Concludes by 12:00 noon — you’ll be free to have lunch with your clone.
🗂️ Program:
8:00–8:50 a.m. – Registration and Coffee
8:50–9:00 a.m. – Introductory Remarks by Dean David Marchick and ARI Director Chris Castle
9:00–10:00 a.m. – Topic 1: AI Provenance Is the Cornerstone of Legitimate AI Licensing:
Speakers: Dr. Moiya McTier Human Artistry Campaign Ryan Lehnning, Assistant General Counsel, International at SoundExchange The Chatbot Moderator Chris Castle, Artist Rights Institute
10:10–10:30 a.m. – Briefing: Current AI Litigation, Kevin Madigan, Senior Vice President, Policy and Government Affairs, Copyright Alliance
10:30–11:30 a.m. – Topic 2: Ask the AI: Can Integrity and Innovation Survive Without Artist Consent?
Speakers: Erin McAnally, Executive Director, Songwriters of North America Dr. Richard James Burgess, CEO A2IM Dr. David C. Lowery, Terry College of Business, University of Georgia.
Moderator: Linda Bloss Baum, Director Business and Entertainment Program, Kogod School of Business
11:40–12:00 p.m. – Briefing: US and International AI Legislation
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!
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)
New Survey for Songwriters: We are surveying songwriters about whether they want to form a certified union. Please fill out our short Survey Monkey confidential survey here! Thanks!
We will be posting excerpts from the Artist Rights Institute’s comment in the UK’s Intellectual Property Office proceeding on AI and copyright. That proceeding is called a “consultation” where the Office solicits comments from the public (wherever located) about a proposed policy.
In this case it was the UK government’s proposal to require creators to “opt out” of AI data scraping by expanding the law in the UK governing “text and data mining” which is what Silicon Valley wants in a big way. This idea produced an enormous backlash from the creative community that we’ll also be covering in coming weeks as it’s very important that Trichordist readers be up to speed on the latest skulduggery by Big Tech in snarfing down all the world’s culture to train their AI (which has already happened and now has to be undone). For a backgrounder on the “text and data mining” controversy, watch this video by George York of the Digital Creators Coalition speaking at the Artist Rights Institute in DC.
In this section of the comment we offer a simple rule of thumb or policy guideline by which to measure the Government’s rules (which could equally apply in America): Can an artist file a criminal complaint against someone like Sam Altman?
If an artist is more likely to be able to get the police to stop their car from being stolen off the street than to get the police to stop the artist’s life’s work from being stolen online by a heavily capitalized AI platform, the policy will fail
Why Can’t Creators Call 999 [or 911]?
We suggest a very simple policy guideline—if an artist is more likely to be able to get the police to stop their car from being stolen off the street than to get the police to stop the artist’s life’s work from being stolen online by a heavily capitalized AI platform, the policy will fail. Alternatively, if an artist can call the police and file a criminal complaint against a Sam Altman or a Sergei Brin for criminal copyright infringement, now we are getting somewhere.
This requires that there be a clear “red light/green light” instruction that can easily be understood and applied by a beat copper. This may seem harsh, but in our experience with the trillion-dollar market cap club, the only thing that gets their attention is a legal action that affects behavior rather than damages. Our experience suggests that what gets their attention most quickly is either an injunction to stop the madness or prison to punish the wrongdoing.
As a threshold matter, it is clear that AI platforms intend to continue scraping all the world’s culture for their purposes without obtaining consent or notifying rightsholders. It is likely that the bigger platforms already have. For example, we have found our own writings included in CoPilot outputs. Not only did we not consent to that use, but we were also never asked. Moreover, CoPilot’s use of these works clearly violates our terms of service. This level of content scraping is hardly what was contemplated with the “data mining” exceptions.
We’re pleased to announce more speakers for the 4th annual Artist Rights Symposium on November 20, this year hosted in Washington, DC, by American University’s Kogod School of Business at American’s Constitution Hall, 4400 Massachusetts Avenue, NW, Washington, DC 20016. The symposium is also supported by the Artist Rights Institute and was founded by Dr. David Lowery, Lecturer at the University of Georgia Terry College of Business.
The four panels will begin at 8:30 am and end by 5 pm, with lunch and refreshments. More details to follow. Contact the Artist Rights Institute for any questions.
Summary: The fight over frozen mechanicals continues to pay off as songwriters log another cost of living increase for physical/downloads while streaming falls farther behind.
The Copyright Royalty Board adjusted the US statutory mechanical royalty for physical carriers like vinyl, CDs and downloads annually during the current rate period. This is entirely due to the success of public comments by the ad hoc songwriter bargaining group that persuaded the Copyright Royalty Judges to reject the terrible “frozen mechanicals” settlement negotiated with the NMPA, NSAI and RIAA.
As it turned out, once the judges rejected the freeze as unfair, the labels quickly agreed to a fair result that increased the physical/download rate from a 9.1¢ base rate to the 12¢ rate suggested by the Judges which went a long way to making up for the 15 year freeze at 9.1¢. In fact, if it had just been presented to the labels to begin with, a tremendous amount of agita could have been saved all round.
Crucially, not only did the base rate increase to 12¢, the judges also approved a prospective cost of living adjustment determined by a formula using the Consumer Price Index. The end result is that unlike streaming mechanicals paid by the streaming services like Spotify (i.e., not the labels) the value of the increase from 9.1¢ to 12¢ has been protected from inflation during the rate period (2023-2027).
Unfortunately, the streaming services were allowed to reject a cost of living for streaming mechanicals, notwithstanding the Judges’ and the services’ acceptance of an COLA-type adjustment to the multimillion dollar budget of the Mechanical Licensing Collective. That COLA is ased on a government measurement of inflation (the Employment Cost Index) comparable to the CPI-U that is used to increase the services’ financing of salaries and other costs at the Mechanical Licensing Collective. So those who are paid handsomely to collect and pay songwriters get a better deal than the songwriters they supposedly serve.
What is the increase in pennies this year for the physical/download mechanical rate? The Judges determine the inflation-adjusted rate every year during the five year rate period (2023-2027). The calculation is made in December for physical/download with reference to the CPI-U rate announced by the Bureau of Labor Statistics as of December 1, which means the rate published on November 11. The new rate goes into effect on January 1, 2025.
At this point, there does not seem to be any indication that there will be a large spike in inflation between now and November 11, so we can use the September rate (just announced in October) to make an educated guess as to what the 2025 statutory rate increase will be for physical/downloads (rounded down):
So we can safely project that the base rate will increase from 12.4¢ for 2024 to about 12.6¢ in 2025 without firing a shot. If you have a 10 x 3/4 rate controlled compositions clause, that means the U.S. controlled pool on physical will be approximately 94.5¢ instead of the old frozen rate of 68.25¢.
It’s important to note a couple things about the relevance of CPI-U as a metric for protecting royalty rates from the ravages of inflation. First of all, the CPI-U is a statistical smoothing of the specific rates for particular goods and services that it measures and doesn’t reflect the magnitude of changes of some components.
For example, the September CPI-U increased by 0.2% on a seasonally adjusted basis. However, the shelter index and the food index increased at higher rates:
The shelter index rose by 0.2%, and the food index increased by 0.4% Together, these two components contributed over 75% of the monthly increase in the all items index.
Chris Castle said, “These are good benchmarks to keep in mind as we head into a new rate setting period in a year or so when I expect songwriters to demand a COLA for streaming mechanicals. No more poormouthing from the services. If they can give it to MLC, they can give it to the songwriters, too.”
The Artist Rights Institute takes on the pressing public policy issue of The MLC, Inc.’s investment of “hundreds of millions of dollars” of the black box and asks the Copyright Office to decide the legality of the MLC’s “Investment Policy.”
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