Web3 x AI Series | How AI Could Help Rebuild the Music Rights System
Published on Jul 24, 2026
In 1999, an eighteen-year-old college student named Shawn Fanning
released Napster, a file-sharing program that turned recorded music
into something closer to water than product, slipping through the
industry’s controlled channels with a speed that made record stores,
CD plants and label-managed release schedules feel built for another
age. One listener with a file could become a distributor to millions
of others, and the distance between a private collection and public
circulation collapsed almost overnight.
The industry called it piracy, and well, legally it was, but the
deeper shock came from seeing how weak the old system looked once
music stopped moving through objects that could be pressed, shipped,
scanned and audited. A CD had to pass through a commercial chain
before reaching the listener, which made it possible to count in a way
the business understood. An MP3 could appear across dorm rooms and
hard drives before the industry had even agreed what kind of threat it
was facing, creating a rights crisis that belonged as much to
infrastructure as copyright law.
Napster was eventually sued, restricted, shut down and absorbed into
music history as a warning, but the behavior it revealed became
permanent because listeners had already learned that songs could move
outside the official channels, beyond the timing of retailers,
broadcasters, publishers, labels and collection systems. The internet
didn’t simply create a piracy problem, it exposed the distance between
how music really moved and how the business expected to account for
it.
Almost three decades later, AI has opened a much larger creative
field, allowing music to be transformed, extended and reimagined in
ways that were previously impossible for most artists and producers to
access. It also creates a more complex version of the rights problem
Napster exposed. Napster asked whether a song could be shared without
permission, but AI asks how a song, voice, performance or creative
identity can become part of something new without separating that
opportunity from consent, attribution and payment.
This is not really unique to AI, which is what makes the current
moment so important. Napster first showed what happened when music
could leave the official channels before the industry knew how to
count it, sampling dragged older contracts and permissions into new
records, and streaming made legal access easy without making
ownership, splits and payment any easier. AI is the newest stage of
that shift, only faster and harder for the existing system to follow.
Music can now be used for training, transformed into new forms and
combined with human work at a scale the old rights infrastructure was
never designed to manage.
Done properly, that can create new tools, licensing markets and
sources of income for artists, but only if the record of who created
the material, who controls it, what use was approved and where the
payment should go can keep up.
Music is one of the best ways to understand why Uptick’s
infrastructure is useful, because AI can separate the output from the
permission behind it almost immediately. A voice model can generate
hundreds of tracks, a licensed stem can be reused across different
releases, and a recording approved for one form of training can
surface inside tools and outputs the original rights holder never
expected. The music keeps moving, but the record explaining who
approved the use, what they approved and which payment terms apply
stays behind.
The industry needs a way for the permission to be recorded as part of
the digital asset from the beginning, and that is exactly what Uptick
can provide. A voice model, training license, sample or generated
track can receive a unique identifier, with creator information,
recorded ownership, permitted uses and royalty terms attached through
its rights metadata. The resulting output can then stay connected to
the asset and authorization it came from, rather than entering
distribution as a finished file with no visible record of how it was
made or whether the underlying use was approved.
The music rights system looks fairly simple from the outside because a
listener presses play, one song starts, and the whole thing feels like
a single object. The reality behind that song actually has a lot more
nuance, with one person writing the melody, another shaping the
production, another performing the vocal, and someone else controlling
the recording that eventually reaches the listener. A sampled phrase
from a decades-old record can sit inside the same track, pulling old
contracts and permissions into the economics of a new release, so the
listener hears one song as the royalty system tries to work out the
chain of people and rights behind it.
For decades, this system just about held together because the business
moved slowly enough for the friction to hide. Labels handled recording
and distribution, publishers administered compositions, performing
rights organizations (PROs) collected performance royalties, and
collection systems tried to keep usage connected to ownership. It
wasn’t the ideal solution, but disputes moved at the speed of lawyers,
audits and paperwork rather than automated upload pipelines.
Streaming changed this balance by making legal music easier to reach
than piracy, and the industry returned to growth, with recorded music
revenues reaching $31.7 billion in 2025 as streaming accounted for
almost 70 percent of recorded music income. The platform became the
record store, the radio station, the recommendation engine and the
listening device in one interface. On the surface, this looked like
the industry had found its way out of the mess, but access and
accounting are not really the same thing.
A platform can count usage with incredible precision and still fail to
connect that usage to the correct rights holder if the metadata is
incomplete, conflicting, outdated, or trapped in a system that doesn’t
match the one making the payment. After the play button, the system
still has to identify the recording, match it to the composition,
apply the right license, calculate the payment and route the money to
the people entitled to receive it. When the record is incomplete,
money sits unmatched. When the split is wrong, the wrong party gets
paid. When a contribution is missing, the person who helped create the
work disappears from its economics.
The Mechanical Licensing Collective exists partly because legal
streaming still produced a huge historical residue of unmatched
royalties, with streaming activity from 2007 to 2020 leaving money
that couldn’t be paid out easily until a new system was built to match
and distribute it. A modern music economy still found itself stuck on
a very old problem, because the music had moved and the record of who
was owed what had not kept up.
De La Soul’s catalog showed the cultural version of the same failure,
as some of the group’s classic albums stayed off streaming services
for years because old sample clearances and a long-running dispute
over the terms of the group’s label deal hadn’t been resolved. Fans
wanted the music, platforms wanted the catalog, and the artists wanted
the work available, but unresolved clearances and commercial terms
kept commercially valuable music stuck behind a rights record that
couldn’t move with the same ease as the song itself.
Platform power makes the problem even worse because the companies that
control discovery often control reporting visibility and enforcement
too. Musicians depend on platforms to reach listeners, but they also
depend on them to explain what happened after the music moved, how
much value was created, which royalties were withheld, which tracks
were flagged and which decisions can be challenged. The song can
travel everywhere, but the record explaining what happened to it stays
locked behind another interface.
AI makes the royalty problem more challenging because one output can
depend on several separately controlled inputs. A generated track
might use a licensed voice model, a human-written composition, a
cleared recording and AI-produced stems, with a different permission
and payment obligation attached to each one. Counting the stream is
only the final step, because the system first has to know which assets
contributed to the output, who authorized their use and which share is
owed under each agreement.
Uptick’s copyright and royalty management module gives those
permissions somewhere to remain attached as the music moves. It’s
designed in such a way so that a rights holder could record how a
voice model, sample or other digital asset may be used, which royalty
terms apply and whether the permission is later transferred, extended
or withdrawn, keeping those changes connected to the same underlying
asset rather than spreading them across replacement contracts and
separate platform statements.
That becomes pretty important when a generated track depends on
several licensed inputs, because the voice model, sample, composition
and finished recording don’t have to be collapsed into one vague claim
that everything was cleared. Each permission can stay connected to the
asset it covers and to the later work that depends on it, giving
compatible licensing or distribution applications a clearer record of
what was authorized before the track moves again.
When the covered licensing or payment activity takes place through one
of those applications, smart contracts can apply the encoded split
against the same record that established the permission. Uptick can‘t
resolve a disputed claim or identify a rights holder who was never
recorded, but once the ownership and permission have been established
and enters the pipeline, it can keep the grant, the later use and the
resulting payment connected instead of allowing the record to fall
behind the music again.
AI expands what music can be made from, and a producer can work with
generated stems, licensed voice models, transformed recordings and
human performances inside the same track, opening brand new forms of
collaboration that don’t fit neatly into the old categories of
sampling or cover versions. That creative range becomes difficult to
support when the path behind the finished output stays hidden, because
the system still needs to know which human and digital contributions
were involved, what was authorized and how the resulting value should
be divided.
That opacity is now an industrial problem, rather than a speculative
one, as we can see with Deezer reporting in July 2026 that it was
receiving nearly 90,000 fully AI-generated tracks per day, with
AI-generated music exceeding half of all new uploads on peak days in
June. AI music isn’t arriving as a few niche experiments at the edge
of the industry, but as a massive production shift that becomes a big
problem the moment money starts moving.
The old piracy debate was easier to understand because the copied
object already existed. Someone uploaded a commercial recording,
someone downloaded it, and even when the legal arguments became
complicated, the object itself was not that mysterious. AI music is
harder to classify because a model can learn from large bodies of
music and generate a track that doesn’t reproduce any one song
directly. While that sounds a bit scary, it actually creates real room
for new creative tools and licensed forms of generation, but it also
moves the rights question upstream, toward the material used to build
the model and the terms under which artists participate.
The lawsuits around Suno and Udio showed how far upstream this
question had moved, with major record companies alleging that
copyrighted recordings were copied and exploited without permission to
build commercial generation services, as the companies behind those
tools argued that training was lawful and their systems created new
works. Some of those disputes have since shifted into licensed
partnerships, with Warner settling with both companies and Universal
settling with Udio, but other claims are still active. Either way, the
industry is no longer only asking who gets paid when a song plays,
it’s asking whether the material used to build the system should have
been licensed before the song existed.
Voice cloning makes the issue even more problematic because a voice
carries identity and commercial value in a way that can’t be reduced
to ordinary composition rights. The fake Drake and The Weeknd track
‘Heart on My Sleeve’ landed as a warning because it sounded less like
a random novelty and more like a plausible leak from the streaming
economy itself. Listeners didn’t need a legal theory to understand the
discomfort, because a voice carries reputation, recognition, fan
attachment and ultimately, money.
Tennessee’s ELVIS Act, signed in 2024, extended protection around
name, image, likeness and voice in response to AI cloning, showing
that lawmakers understood a voice couldn’t be treated as a minor
variation of ordinary copyright. State-level protection won’t carry an
industry operating across platforms and jurisdictions, but the
direction is obvious. AI forces music rights to account for identity
and consent as part of the economic life of music, rather than
treating them as reputational issues outside the payment system.
Despite these issues, AI also creates one of the first real chances to
rebuild music rights around creation itself. Artists can license
approved voice models, define how their work can be used for training
or generation, collaborate through new forms of human and
machine-assisted production, and receive payment through terms
established before release.
In the older system, a lot of the time, rights were cleaned up after
the work had already traveled, but AI creates the opportunity to place
consent, attribution and payment at the beginning of the creative
process instead.
AI has the potential to operate as a new creative and licensing layer
built around artist participation. Grimes’ Elf.Tech gave creators the
ability to use an AI version of her voice commercially for a royalty
split, and the important part was not only the novelty of hearing a
synthetic Grimes vocal, but the structure around permission. The voice
became a licensable creative asset, allowing other producers to
experiment with it under rules and payment terms established by the
artist before release.
A producer should be able to license an artist-approved voice model, a
songwriter should be able to define whether their catalog can be used
in a specific training or remix arrangement, and artists should be
free to use AI as part of their own creative process without being
treated like automated accounts flooding platforms with disposable
tracks. The boundary will not always be easy to draw, but a system
built around clear authorization can support legitimate
experimentation and still separate it from fraud, impersonation and
unlicensed use.
Tidal’s 2026 policy shows that platforms are starting to draw those
lines regardless, and the company stopped paying royalties on fully
AI-generated tracks on July 15. The policy will be debated because
detection is difficult and the line between assisted and generated is
murky at best, but platforms are now being forced to decide what
deserves payment, what deserves disclosure, and what should be
excluded from monetization entirely.
Platform policy alone can‘t become the rights system, especially when
each service can apply a different standard at the exact moment the
industry needs clearer records around consent, attribution, usage and
payment.
The Mechanical Licensing Collective’s backlog existed because the
record proving who was owed money lived in a different place from the
record proving what had actually happened. AI could produce that same
failure faster, with voice models and generated stems creating
derivative claims before any registry catches up.
Uptick’s copyright and royalty management module allows the permission
to begin with the AI asset rather than being reconstructed after the
output has already spread like wildfire. An approved voice model could
receive a unique identifier linked through Uptick DID to its artist or
authorized controller, with metadata defining whether it can be used
for training, generation, commercial release or derivative work. The
same record could include the license period, usage restrictions,
royalty terms and any limits on sublicensing, and fuller agreements
and provenance files stay linked through decentralized storage rather
than surviving only inside the model provider’s private system.
An AI-generated track could depend on several permissions that don’t
come from the same party. Approval to use a recording for model
training doesn’t necessarily cover the composition beneath it, and
permission to use an artist’s voice for one commercial release doesn’t
open that voice to unrestricted generation. The beauty of building on
Uptick is that it allows those approvals to stay separate, all while
connecting each one to the resulting work.
Those permissions can also continue changing without breaking the
history around them. A license can expire, a usage right can be
extended, a royalty term can be updated through an authorized action,
or control of the underlying asset can move to another party. Uptick
keeps those changes attached to the same rights record, creating a
continuing path from the original consent to the outputs and
transactions that followed.
De La Soul’s catalog wasn’t stuck because the music had no value, it
was stuck because the permissions around it couldn’t move easily into
a new listening environment. AI can repeat that problem at a much
larger scale, with one approved model producing thousands of outputs
that pass through creation tools, distribution platforms and
blockchain networks that never saw the original agreement.
Uptick’s cross-chain copyright management functionality keeps the
identifier, recorded controller, usage rights and authorization
history connected as the asset moves between supported networks. The
legal right still comes from the underlying agreement and the party
authorized to grant it, but the record linking an AI-generated track
back to an approved voice, licensed stem or training asset doesn’t
have to be left behind with the application where it was created.
A producer licensing an approved voice model could check whether
commercial release is permitted, whether the voice may be altered, how
long the approval lasts and which royalty share applies before
generating the track. Once the track exists, its record can stay
linked to both the model and the license used to create it, allowing a
later platform to check whether the permission was active and whether
the planned use falls inside its scope.
A licensed sample can carry a separate record for the source
recording, the party granting the clearance, the permitted use and the
royalty terms attached to it. Where the recording and composition
require different approvals, Uptick can keep each permission distinct
but connect both to the resulting track. One AI output can depend on
several rights controlled by different parties, so the system needs to
preserve those differences rather than reducing everything to a single
claim that the music was licensed.
None of this means PROs, labels, publishers or collection systems
disappear overnight, because they still establish, administer and
resolve the rights behind the music, but Uptick finally allows the
permissions they recognize or grant to stay connected to the voice,
recording, composition or model as it enters the AI process, and to
the outputs created from it afterward.
The authorization can be recorded before generation, updated as its
terms change and checked again before the resulting work is
distributed or monetized. The AI platform no longer has to be the only
place where the relationship between the source material, the
permission and the output exists. Music has been missing this for a
long time because the industry became very good at moving sound,
without becoming equally good at moving the rights record with it.
The history of music technology has never been a clean march of
progress. Radio expanded reach but created new royalty fights,
sampling expanded musical language but created clearance battles,
Napster broke distribution control, and streaming made access easier
but concentrated power inside platforms.
AI is the next break in that chain, arriving before the last system
has fully fixed its own royalty problems. It does however create a
chance to build something better, with artists choosing how their work
enters the AI economy, producers gaining access to new creative tools,
and permissions and payments established before the resulting music
begins to circulate.
Uptick is designed to keep that permission connected from the voice,
recording, composition or model entering the AI process through to the
outputs, licenses and payments that follow. The record can show who
authorized the use, which material the permission covered, what
restrictions applied and where the resulting value should go. AI can
generate music faster than any manual rights system can review it, but
the connection between consent and output doesn’t have to disappear
once the first track is created.
Music has always escaped the containers built around it, from physical
records to file-sharing networks to streaming platforms. AI continues
that movement by giving artists and producers new ways to transform,
extend and generate music, but its potential depends on a rights
system capable of moving at the same speed.
The recurring theme is that the record has to move with the work, so
consent stays visible, creative contributions stay connected and the
value created by AI can return to the people who really made it
possible.