AI & Technology

How music creativity is interacting with AI and tech developments across international jurisdictions.

By Hannah Kong, Counsel at Reed Smith

Musicians have been using computer or AI-assisted tools in the music production process for many decades. However, it is only in recent years that these tools have evolved and sparked real tension among the traditional rights holders and innovators. From generative composition to voice cloning, AI ultimately challenges the fundamental economics of the music industry. Three distinct sources of monetisation have emerged: 1. input (e.g. how do I select and acquire the training data?); 2. output (e.g. how can I monetise the generated song?); and 3. identity (e.g. to whom should the output be attributed / who should get paid?). 

For stakeholders, the challenge is no longer just about discovering the breakthrough artist (perhaps they already have algorithms that can identify the relevant patterns), but it is about designing business models that can survive infringement claims and jurisdictional arbitrage.

As we’ve seen in the past six months alone, we are on the precipice of a major market restructure. Major rights holders are no longer fully resisting the use of their catalogues in the creation and training of AI tools. Instead, we are seeing the early stages of an embrace that is creating a bifurcation of AI tools and software.  On the one hand we have licensed, rights-cleared AI ecosystems and on the other hand, unlicensed systems that are facing increasing levels of litigation. 

Why Singapore is the strategic choice 

There are many factors to consider when determining where the best place is to establish an AI-centred business. However, from a purely tech and commercial perspective, Singapore must be one of the top contenders. The city-state has long been heralded as business and innovation-friendly, and it is continuing to invest in AI at huge scale with the government recently announcing S$1B+ (US$779 million) in public AI research funding through 2030. 

The aim is to support locally grown talent and attract serious AI builders to the island. When discussing music, AI and tech, it would be remiss not to mention the standout Singapore-based social music creation platform, BandLab, which designs and develops innovative and AI-driven tools and services for music creators globally. Another example of Singapore punching above its weight in the AI space is the recent $2 billion acquisition by Meta Platforms of Manus, a Singapore-based developer of general-purpose AI agents.   

International idiosyncrasies: Asia is not a monolith  

Unlike Europe which has leaned heavily towards harmonisation to promote free trade across the continent, for companies expanding across Asia, the legal reality is colourful variance. For example, approaches to copyright, text-and-data mining exceptions, content controls and enforcement vary wildly between Tokyo, Jakarta, and Beijing.  

Another key benefit of operating an AI-led business in Singapore is that the country’s laws are more permissive of text/data mining for training compared with some other jurisdictions. Singapore has strategically positioned itself as a hub that can provide legal clarity, talent and significant investment. One great example is the launch of the SEA-LION open-source LLM built by Singapore to understand Southeast Asia’s languages, cultures, and contexts. 

For music-tech companies, one strategy is clear in respect of Asia: they must build and design for variance, and ensure that licensing, provenance tracking, and content policies are easily adaptable to different jurisdictions. Ultimately, the goal is to design a legally compliant model that respects and can easily adapt to regional nuances in order to thrive in Asia and beyond. 

 

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