AI Music Licensing: Majors Sign Klay Deal But Independents Are Left Behind

What is Klay’s Large Music Model?

Klay’s platform uses its patented Large Music Model (LMM), which is an AI architecture trained entirely on licensed musical material. Unlike many AI music projects that face accusations of unlicensed scraping, Klay has designed its system to create immersive and interactive listening experiences without copyright infringement. By partnering with all three major labels, Steer Management-level industry players, and global rightsholders, the company positions itself as a model for responsible AI development.

How do these deals protect artist rights?

The agreements allow the start-up to utilise high-quality stems and recordings to “reimagine listening with immersive, interactive tools.” Klay emphasises collaboration with the industry to enhance human creativity rather than replace it. This approach aims to improve the consumer experience while ensuring that songwriters and rightsholders within the major-label ecosystem are compensated for the use of their intellectual property in AI training sets.

Are independent artists covered by Klay’s AI licensing deals?

Currently, the majors are secured—but independent artists remain largely unprotected. Dance music labels, small publishers, and SoundCloud creators exist outside the major-label system and have yet to see similar protections. While the company says it plans to expand its licensing approach to independent labels and artists, a formal structure for the independent sector is not yet in place.

Other AI start-ups, including Suno and Udio, are also exploring deals. Udio recently settled a copyright lawsuit with the majors before signing its own licensing agreement. The question of AI music licensing for independent creators remains urgent: without clear agreements, smaller creators could see their work used without compensation while majors benefit first. Read our thoughts on the hidden cost to human artists here.