ElevenLabs has launched Eleven Music, their new AI music generation service, and they say they've done it with a new strategy: don't get sued. While competitors Suno and Udio are in litigation with major labels for allegedly training on copyrighted material, ElevenLabs secured licensing deals with Merlin Network (a digital rights agency for independent labels) and Kobalt Music Group before launching. That's revolutionary thinking in AI circles.
The product works exactly as you'd expect. You type "create a smooth jazz song with a '60s vibe and powerful lyrics, but relaxing for a Friday afternoon" and get a complete track with vocals and instruments in minutes. The licensing strategy is the real story here; by partnering with independent labels and rights agencies, they're creating what CEO Mati Staniszewski calls "legal cover for broad commercial use."
The business case is compelling. For the cost of licensing one piece of stock music, you can use generative AI to create hundreds. I've lived several of these production efficiency transitions in my music career, first from acoustic to electronic musical instruments. Fun fact: A zillion years ago, I was one of the first musicians listed as a "synthesizer player" in the Local 802 (the musician's union in NYC) directory.
Then, there was the transition from recording studio to home studio, then the transition from analog studio to digital studio. At the same time, stock music transitioned from vinyl records to CDs (which brought the fidelity to parity with original music productions), then CDs to audio files (which made searching for tracks practically instant).
Now, generative AI will simply obliterate the economics of (what I call) "required creative." These are utility tracks: nondescript instrumental tracks used to evoke a feeling under a commercial (that also has sound effects and a voice over), all of which can be generated.
On the consumer side, ElevenLabs says it has built safeguards to prevent users from generating songs with specific artist names or copyrighted lyrics. They're essentially creating AI guardrails that acknowledge artistic ownership while still enabling creation. It's like building a copy machine that refuses to photocopy currency.
Of course, the major labels (Universal, Sony, and Warner) still haven't signed on, and their catalogs represent the vast majority of popular music. ElevenLabs hopes to strike deals with the majors, but (for now) Staniszewski confirms they're "not using their data in our model." It's hard to say whether or not you need the biggest artist's works to train a model. It's more important to be able to reference an artist as most people associate a "sound" with a name. You are more likely to prompt, "Give me a song that sounds like Bob Marley" than to prompt, "I need a 72-96 bpm reggae groove with a one-drop pulse, skank guitar, and bubble organ."
According to reports, ElevenLabs has given 20 customers early access to test the service across film, TV, gaming, fitness apps, and individual creative projects.
The legal backdrop makes this timing crucial. In June 2024, Sony, Universal, and Warner sued Suno and Udio for "mass copyright infringement," seeking up to $150,000 per infringed work, which is potentially billions in damages. Those same labels are now reportedly in licensing negotiations with the companies they sued – which is the more classical AI playbook.
As with everything, the real test will be market adoption. If businesses embrace legally-cleared AI music over potentially infringing alternatives, it could establish a new standard for responsible AI development across creative industries. If not, we're heading for a very messy legal future where innovation and litigation dance an expensive tango. Either way, the music industry just got a lot more interesting.
As always your thoughts and comments are both welcome and encouraged. -s
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
