Merlin Signs Licensing Agreement With Spotify for AI Remixing Tool

Merlin has signed a licensing agreement with Spotify allowing for the streaming platform to give paying Spotify subscribers the ability to remix songs represented by the indie trade group, the companies announced today (Aug. 4). Artists on labels under Merlin’s agreement will have the option to participate, according to a press release.

Spotify initially announced its AI remixing tool in May, with Universal Music Group (UMG) the first label to sign on. The deal encompassed recorded music and publishing rights, and was announced as part of Spotify’s Investor Day presentation.

“This agreement with Merlin ensures participating artists are credited and compensated, and that every creation drives listeners back to the original work,” Charlie Hellman, senior vp and global head of music at Spotify, said in a statement. We’re proud to extend this model to the independent community, and we look forward to welcoming more partners as we continue to build.”

When Spotify initially announced the streaming platform’s remixing capabilities, it said that it will open up additional streaming revenues for participating artists. The remixing capabilities will be available to premium subscribers as a paid add-on.

“Giving our members’ artists the choice to make their music available as part of this exciting technology, while ensuring the opportunity to participate in an additional revenue stream, is exactly what Merlin is here to do,” Charlie Lexton, CEO of Merlin, said in a statement. “Spotify’s respect for our members and their artists’ rights is exemplary, making our decision to work on this project an easy one.”

Spotify co-CEO Alex Norström said on the company’s earnings call today, “Following an agreement that we had with UMG and Universal Music Publishing Group in May, we announced today the deal with Merlin, which adds 30,000 [in our] network the opportunity to partake in this new product that we’re building around covers and remixes.”

Norström emphasized that the AI capabilities at Spotify will follow the “three C’s”: consent, credit and compensation.

Last October, Merlin was one of five record groups (including UMG, Warner Music Group, Sony Music and Believe) to partner with Spotify in developing artist-first AI music products. The announcement came with four guiding principles on AI, including partnerships with labels, distributors and music publishers; allowing the artists to be the ones who choose to opt-in; fair compensation; and an emphasis that the artist-fan relationship would be prioritized.

In recent weeks, the RIAA, IFPI , American Association of Independent Music (A2IM) and more joined together to propose the creation of a label for tagging AI songs. The voluntary system would provide two labels: one called “AI-generated,” for songs completely created by AI; and one called “AI-assisted,” for songs that use AI in some parts. Shortly after that announcement, UMG, WMG, Sony Music, HYBE, Believe, BMG and more proposed a set of new principles for how AI songs could be considered for chart eligibility, also emphasizing a distinction between AI-generated and AI-assisted songs. Neither proposal has been adopted as of yet.