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Have We Hit Dystopia Yet? Band Wakes Up to Find AI Has Stolen 94% of Their Spotify Royalties by Duplicating Their Album and Altering the Speed
Musician Owen Lyman-Schmidt found out that his work had been stolen when a longtime fan of his band, Makeshift Hammer, messaged him to let him know an album on Spotify sounded as if someone had taken his music and “distorted it a bit.” They sent a link to an album called Blue Road by an artist named Carey Dupont.  “I had never heard of Carey Dupont. And if you looked closely, the album art didn’t quite make sense,” Lyman-Schmidt wrote. “Dupont had no other releases that I could find and was seemingly otherwise unknown to the internet.” Lyman-Schmidt describes Makeshift Hammer as “Philly’s premier mandolin-bass guitar-junk percussion gutter-folk duo, which is a fancy way to say we know a thing or two about being unknown.” He and his bandmate Bobby have been playing together “for a dozen years,” and music isn’t their day job; in fact, Lyman-Schmidt is a private detective.  “But Carey Dupont seemed even more off the grid than we were. They had no website, no social media, no dead ticket links to past shows, no profile in alt-weeklies,” he explained. “Nothing except Blue Road, the album, on every streaming service.” Makeshift Hammer’s fans and friends alike agreed that there must be some way to address the issue. “The theft is so blatant,” wrote one listener. Soon, the duo learned that another local Philly musician, Katie Feeney, better known as Roberta Faceplant, had experienced a similar problem. By now, the tracks from the Blue Road album had surpassed 650,000 listens, and it seemed near-constant and obviously inflated listens using bots. The fake listener bots havebeen plaguing Spotify and other music streaming platforms well before the birth of today’s AI. The combination of AI music fraud and artificially inflated streams is a symptom of a larger streaming-era problem: platforms have made music far easier to distribute at the cost of authenticity. Distorted streams, royalties, and artist visibility are plaguing smaller artists who already have to fight to be seen and heard. So what are the major industry players willing to do about it?

 

Meta’s Newest AI Tool Is Using Your Instagram Photos Without Permission
Meta has launched a new AI generator, available for free through the Meta AI app, as well as on Instagram Stories and WhatsApp. It’s already a problem.  Worse still, Meta policy states that “people may be able to create content with your Instagram content using AI features at Meta,” and that users “will not be notified about content created using AI features at Meta.” However, Meta claims that users “have control” over this feature, stating that there are settings to disable this kind of use of one’s pictures—but it’s clearly an “opt-out” situation rather than an “opt-in.” Meta is launching a slew of Muse-powered AI effects for Instagram Stories, including customizable filters that can be used to modify existing photos. The company also teased Muse Video, an AI video generator, which is “already in development,” but information on that tool is currently scarce.Meta announced the launch of its new AI image generator, Muse Image, built by its dedicated AI unit, Meta Superintelligence Labs. The tool is now available for free via the Meta AI app, as well as on Instagram Stories and WhatsApp.  Muse is mostly the same as other AI image generators on the market; it comes with a variety of preset image prompts to help users “spark ideas.” However, as TechCrunch points out, the model is already causing problems.

 

Warner Music Hits Back Hard at the American Federation of Musicians’ AI Lawsuit
Warner Music Group (WMG) is officially looking to toss the breach of contract lawsuit filed against it by the AFM, maintaining, among other things, that the agreement at the case’s center “does not cover AI licenses.” WMG recently shed light on its dismissal arguments when requesting a related pre-motion conference. As first reported by DMN, the American Federation of Musicians (AFM) in June accused the major label (and Universal Music) of failing to cut its members in on Suno and Udio licensing revenue.  In the plaintiff’s view, each of those pacts constitutes a “new use” under the relevant Sound Recording Labor Agreement (SRLA) – meaning that the AFM musicians who contributed to the licensed recordings are purportedly entitled to a piece of the gen AI pie. Now, Warner Music has made clear that it’s on a decidedly different page. Ahead of an anticipated motion to dismiss, the major told the court that “Warner Music Group Corp. is not a signatory to the SRLA, does not itself own copyrights, was not a plaintiff in the copyright infringement lawsuits against Suno and Udio, and thus does not have licenses with Suno or Udio.”  “To the extent AFM seeks to assert a breach of contract, it is not against Warner Music Group Corp. That is alone enough to dismiss the complaint as to Warner,” the pre-motion letter reads. Time will tell whether Warner Music’s dismissal push is effective – though even if the defendant wins in the courtroom, a PR victory could prove elusive.

 

This Isn’t Just Copyright—It’s Trade Discrimination Against American Creators
On July 8, an unusually broad coalition representing virtually every corner of the American music industry—including performers, musicians, independent labels, collecting societies, unions, songwriters’ organizations, managers, and the Recording Academy—sent a letter to U.S. Trade Representative Jamieson Greer warning that the European Commission has indicated it may consider legislation that could use this gap in U.S. law as the basis for reducing or denying royalties to American performers and record companies in Europe. According to the coalition, nearly $300 million in annual royalties could be at risk if Europe abandons the longstanding principle of national treatment in favor of what proponents call “material reciprocity,” the latest mercantilist dodge. That makes this story about far more than royalties for broadcasts (“neighboring rights”). It is about whether a longstanding defect in U.S. copyright law is beginning to produce real economic consequences for American creators overseas—and why organizations that rarely agree have united to ask the United States government to respond and protect American creators. The music industry has long viewed copyright disputes primarily through the lens of intellectual property. This coalition letter recognizes that international copyright rules increasingly function as trade rules as well. Decisions made in Brussels can directly affect the income of American creators and the competitiveness of American cultural exports. 

 

iHeartMedia Settles FCC Payola Investigation, Agrees to Adopt New Reporting Measures to Ensure Legal Compliance 
iHeartMedia, the largest owner of radio stations in the U.S., agreed to enter into a consent decree with FCC to settle a probe the agency launched last year into iHeartMedia’s compliance with federal rules prohibiting a specific form of payola dubbed “showola” — which involves radio stations pressuring artists to perform at station-hosted music shows or festivals for free or for reduced payment “in exchange for more favorable airtime for their songs,” per the FCC. By entering into the consent decree, iHeartMedia “makes no admission of liability or violation of any law, regulation or policy,” according to the terms of the agreement, released Thursday. The company also is not paying any fines related to the settlement. iHeart has denied that it engages in “showola” practices. 

 

Phonorecords V Settlement Proposal Emerges: Major Labels, NMPA, A2IM, and Others Say the Existing Rates ‘Should Not Be Amended Except for Continuing Inflation Adjustments’
The major labels, the NMPA, and others have reached a settlement covering stateside mechanical rates for physical formats and permanent downloads across 2028 and 2032. But the proposal, which would leave the existing Phono IV rates in place except for an annual inflation adjustment, is already eliciting criticism.  The majors and the National Music Publishers’ Association (NMPA), along with the Nashville Songwriters Association International (NSAI), the Music Artists Coalition, and the American Association of Independent Music (A2IM), just recently informed the Copyright Royalty Board of their settlement — and DMN was granted first-look access. The current Phono IV rates, also extending to ringtones, “should not be amended except for continuing inflation adjustments to the rates for physical phonorecords and permanent downloads.” Beyond having the final rate-setting say, the Copyright Royalty Judges arrive at those annual adjustments by calculating based on Consumer Price Index movements. For 2026, the physical and permanent download rate is “13.1 cents [per work] or 2.52 cents per minute of playing time or fraction thereof, whichever amount is larger.”  In other words, though the yearly inflation bump would drive modest physical- and download-rate growth through 2032 as outlined, it wouldn’t deliver a material compositional royalties boost. 

 

The Royalty Registration Checklist: A complete checklist to global rights administration, metadata accuracy, and capturing 100% of your master and publishing royalties.
In the modern music industry, your music can be played millions of times. Still, if your administrative foundation isn’t solid, that revenue either stays in the platform's hands or gets lost in “black box” accounts.  If you are not correctly registered with the appropriate organizations, the money your music generates remains “unclaimed.” Without the right digital paper trail, you cannot claim what you are rightfully owed.  Use this checklist before your next release goes live to claim every dollar that rightfully belongs to you. See Examples below:
1. Performance Royalties (PRO)  US: Register with ASCAP or BMI (writer + publisher side)

2. Mechanical Royalties Collects money when your song is played publicly — radio, streaming, live sets, TV, background music in venues.Paid out for reproduction of a composition — streams, downloads, physical sales (vinyl, CD, cassette).  US: Register with The MLC (Mechanical Licensing Collective) — mandatory for US streaming mechanicals. 

3. Neighboring Rights and Master Royalties  Separate from songwriter royalties — this pays the performer and rights holder of the actual recording, not just the composition.  US: Register with SoundExchange (covers non-interactive digital platforms such as SiriusXM, Pandora, and online radio stations)

4. Publishing Administration  If you write your own music and don’t have a publisher, someone still needs to actively chase royalties across territories and DSPs on the composition side. Decide: self-administer or use an admin service (there are several — compare fees and territory coverage before picking one).
Confirm your publishing entity is registered with your PRO as both writer and publisher, if applicable.
Set a calendar reminder to audit unclaimed/unmatched royalties every quarter

5. Double-Check Your Metadata  Bad metadata = royalties sitting unclaimed in a black box, sometimes indefinitely. ISRC: assigned to every recording (unique per version. Don’t reuse across remixes, edits or distinct remasters). All songwriters, producers, and publishers are listed correctly, with correct splits. Cross-check everything: Ensure your distributor, PRO, and MLC/CMO details are identical. 

 

US Register of Copyrights continues The MLC’s designation as the statutory Mechanical Licensing Collective 
The US Register of Copyrights has continued the designation of The Mechanical Licensing Collective (The MLC) as the statutory collective responsible for administering the blanket compulsory mechanical license for eligible streaming and download services in the United States. The decision follows the Register‘s first periodic review of The MLC‘s designation, as required by the Music Modernization Act (MMA). The rule, published in the Federal Register on Wednesday (June 3), determined that The MLC “continues to meet each of its statutory criteria for redesignation”. “Overall, the administration of the MMA‘s blanket mechanical license has been a great success for publishers, songwriters, and DMPs,” the Copyright Office said in its decision.  Since beginning operations in January 2021, The MLC has enrolled nearly 90,000 members, built a public database containing data for more than 54 million songs, and reached total royalties distributed of nearly $4 billion. The next periodic review of The MLC‘s designation is expected to begin in January 2029.

 

NMPA Releases Latest Per-Stream US Publisher Payouts from Spotify, YouTube, Apple, and Amazon
NMPA president and CEO David Israelite unveils the latest per-stream songwriter and publisher payout across Spotify, YouTube, Apple, and Amazon.  In a post on LinkedIn, National Music Publishers’ Association President and CEO David Israelite unveiled the latest per-stream songwriter and publisher payout. These numbers represent both mechanical and publishing sub-licenses across Spotify, YouTube Music, Apple Music, and Amazon Music. Notably, YouTube is not at the bottom of that barrel.  “How much is 1 million streams worth to the songwriters who make these businesses possible? And remember—most songs are written by 4-5 songwriters, so this amount is split among all of the writers and publishers,” Israelite wrote, noting in an email to Digital Music News that this data from the Mechanical Licensing Collective (MLC) is only inclusive of the U.S., across both mechanical and performance payouts. Specifically, Spotify’s free, ad-supported tier saw a payout of $800, (.0008 per stream for publisher and writers combined) while individual paid Spotify accounts raked in $1,346 (.001346 per stream) Individual YouTube accounts led to a payout of $2,159 (.00216 per stream); individual Apple accounts amounted to $2,367 .00237 per stream), while individual Amazon accounts led to a payout of $3,743 (00374 per stream). Already, A&R representatives and others across the industry are speaking out about those numbers, noting that they represent broader issues across the royalty payout structure.

 

iHeartMedia cuts radio jobs across US as it targets $50m in annual cost savings (report)
iHeartMedia has begun another round of layoffs across its radio division.
The cuts began on Tuesday (June 23) and rolled out across stations in markets across the country through the week, according to RadioInsight, which has tracked the named exits.  iHeartMedia framed the cuts as part of a change to how it programs its stations, in a memo sent to staff by Multiplatform Group CEO Ann Marie Licata and Chief Programming Officer Tom Poleman. “As the number one company in audio, our business model is to build engaged relationships with listeners and then monetize those relationships,” the iHeartMedia executives wrote.  They said iHeartMedia was “now taking an important step that will move us further into the future: Evolving how we program our stations to reward and develop our leading and up-and-coming talent.”  The memo pledged that “Guaranteed Human” would stay “at the core of everything we do,” and that “real voices and real talent strengthen our real connection and commitment to our communities.”  On the cuts themselves, Licata and Poleman wrote that the changes were built around speed for advertisers. The layoffs are tied to a cost-cutting program iHeartMedia outlined alongside its first-quarter results in May.  The company said it anticipated a further USD $50 million in annualized cost savings this year, to begin in the second half of 2026.

 

AI Could Use as Much Water as 1.3 Billion People by 2030, U.N. Report Warns
he water used by artificial intelligence is expected to equal the needs of 1.3 billion people by 2030—threatening natural resources for billions around the world. That’s according to a new report from the United Nations University Institute for Water, Environment and Health (UNU-INWEH) which quantifies the carbon, water, and land footprints of AI's electricity use around the globe. The report finds that AI’s environmental cost is often mismeasured—focusing solely on carbon emissions. However, cooling and generating power for data centers comes with a “water footprint,” while the energy infrastructure and supply chains to build the data centers have a “land footprint.” These are important factors to consider, the report says, when analyzing the stressors a region might be facing due to data centers. By 2030, the report finds, global data centers powering artificial intelligence are projected to consume 945 terawatt-hours of electricity. This is nearly triple the combined annual electricity use of Pakistan, Bangladesh, and Nigeria—countries that together are home to more than 650 million people. The water footprint of data centers is projected to equal the basic domestic water needs of all 1.3 billion people in Sub-Saharan Africa for a year, while their land footprint could exceed 5,590 square miles.But switching to cleaner sources of energy isn’t as simple as it sounds. Minimizing one footprint could come at the expense of magnifying another, researchers say. For example, switching from coal to bioenergy cuts electricity’s carbon footprint by 70%—but increases its water footprint more than 30-fold and its land footprint 100-fold. For a number of communities around the globe, AI is already using up significant energy resources. In 2025 alone, data centers consumed an estimated 448 terawatt-hours of electricity, the report found—more than the country of Saudi Arabia. In many cases, this excessive energy use comes at a cost to those who reside near them.