Sweden launches AI music licence to ensure royalties for songwriters

Sweden’s music rights organisation has introduced a licence that allows artificial intelligence companies to legally use copyrighted songs for training their models, while ensuring that songwriters and composers are paid.

The move announced by rights group STIM on Tuesday responds to a surge in generative AI usage across creative industries that has prompted lawsuits from artists, authors, and rights holders. The creators allege AI firms use copyrighted material without consent or compensation to train their models.

The licence developed by STIM, which represents more than 100,000 songwriters, composers, and music publishers, allows AI systems to train on copyrighted works while paying royalties to creators.

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According to the International Confederation of Societies of Authors and Composers (CISAC), AI could reduce music creators’ income by up to 24% by 2028.

“We show that it is possible to embrace disruption without undermining human creativity. This is not just a commercial initiative but a blueprint for fair compensation and legal certainty for AI firms,” Lina Heyman, STIM's acting CEO, said in a statement.

By 2028, generative AI outputs in music could approach $17 billion annually, according to CISAC.

Sweden has previously set industry standards for platforms such as Spotify and TikTok, and the new licence includes mandatory technology to track AI-generated outputs, ensuring transparency and payments for creators.

Songfox, a Stockholm-based startup, is the first company to operate under the licence, allowing users to create legal AI-generated songs and covers.