Donald Trump’s re-election and his AI policy stance could bring sweeping changes to the music industry, fundamentally reshaping how copyright, licensing, royalties and even ticketing are managed. By prioritizing deregulation, Trump’s administration may favor technological innovation over traditional protections, creating both opportunities and significant risks for music creators and rights holders.
As the second U.S. president to be re-elected after losing an election, Trump has made AI deregulation a central theme, starkly contrasting with President Biden’s “AI Bill of Rights.” Biden’s policies emphasize ethical AI use, privacy, and fairness, incorporating safeguards against risks like bias, data misuse, and unlicensed content replication. In contrast, Trump has pledged to dismantle these measures, viewing them as obstacles to innovation.
AI Deregulation and Its Impact on Licensing
Trump’s deregulatory stance could relax licensing requirements for AI developers, enabling them to train AI models on copyrighted music without compensating artists or rights holders. While this may accelerate AI advancements, it threatens to disrupt the music industry’s revenue model, which heavily depends on royalties and licensing fees.
The U.S. music industry generates over $9 billion annually in royalties, a figure that could face erosion under Trump’s policies. AI-generated music, created at a fraction of the cost, has the potential to mimic or replicate existing works without licensing fees, devaluing original compositions. A joint study by SACEM and GEMA estimates that unlicensed AI replication could result in global revenue losses of $2.9 billion by 2028. The report stated that, “27% of authors’ and creators’ revenue is at risk in the medium term. This would represent a cumulative revenue loss of 2.7 billion euros for Sacem and GEMA members by 2028.”
Tech Influence and Minimal Regulation
Though no top-level music executives attended Trump’s inauguration, the presence of tech leaders like Elon Musk, Mark Zuckerberg, Jeff Bezos, and Bill Ackman signals a potential tilt toward minimal AI regulation. Musk has a history of resisting traditional licensing frameworks, and Ackman has selectively supported copyright enforcement, prioritizing flexibility for tech growth over stringent protections for artists.
Global Divide in Copyright Protections
The rise of AI-generated content is already saturating the music market, reducing demand for human-created works and threatening artists’ income and control over their creations. Trump’s deregulation approach contrasts sharply with the European Union’s stricter copyright protections under its AI Directive, which requires AI developers to license copyrighted content for training purposes. This divergence could leave U.S. artists more vulnerable to unlicensed AI use and revenue losses in global markets.
To his credit, President Donald Trump signed the Music Modernization Act (MMA) into law on October 11, 2018, during his last term, introducing significant updates to U.S. copyright law tailored to the digital streaming era. The bipartisan bill, unanimously passed by the Senate and House, aims to ensure fairer payment for songwriters, artists, and producers by addressing loopholes in digital royalty laws.
Musicians including Kid Rock, Mike Love, Sam Moore, and John Rich attended the signing ceremony, while Kanye West, rumored to join, was absent.
The MMA includes three key updates, fostering collaboration between music creators and digital services. Mitch Glazier, president of the Recording Industry Association of America, praised the act as a landmark achievement, creating a more equitable music market through fair competition and pay
Meanwhile, U.S. Justice Department, alongside 30 state and district attorneys general, filed a civil antitrust lawsuit against Live Nation Entertainment Inc. and its subsidiary, Ticketmaster LLC, accusing them of monopolistic and anticompetitive practices in the live concert industry. The suit alleges that Live Nation-Ticketmaster’s dominance violates the Sherman Act by restricting competition, harming fans, artists, and venues, and stifling innovation.
Key claims include the use of exclusive contracts to block rivals, retaliatory actions against competitors and venues, and acquisitions of smaller promoters to eliminate threats. Live Nation-Ticketmaster’s business model allegedly locks artists and venues into its ecosystem, raising ticket prices and limiting consumer choices. The lawsuit seeks structural changes to restore competition, reduce costs for fans, and create opportunities for artists and independent promoters.
Live Nation-Ticketmaster controls a vast share of the concert promotion, ticketing, and venue markets, generating over $22 billion annually and managing more than 265 venues across North America. The Justice Department’s action aims to dismantle their monopolistic practices and promote fairness in the live music industry.
