Music Industry Scam: How Distributors Exploit Artists

The Newest Music Industry Scam: How Distributors Are Exploiting Independent Artists

In a recent episode of the Top Music Attorney Podcast, entertainment lawyer and artist Miss Krystle exposed a deeply concerning new trend in the music industry. Her investigation revealed that some major music distributors are enticing independent artists into signing away their rights under the guise of financial incentives. What initially appears as an opportunity for artists to earn more money could actually result in them forfeiting control over their own music, with potentially devastating consequences.

How Distributors Are Manipulating Artists

Miss Krystle's findings indicate that certain music distributors, including TuneCore and LANDR, have introduced AI-related programs that require artists to opt in—often without fully understanding the implications. These programs grant the distributors and their partners extensive rights over an artist’s music, allowing them to train AI models and generate new music based on that data. Worse yet, artists receive little to no compensation for their contributions.

What’s Actually Happening?

These programs operate under misleading terms. Artists are promised a share of revenue, but the reality is:

• Artists waive ownership rights to AI-generated music derived from their original works.

• Distributors and their AI partners retain full control over the newly created material.

• Compensation is negligible—artists may receive only a fraction of any revenue generated, and only if the company secures licensing deals.

• Opting out is nearly impossible—even if an artist wants to withdraw their music, once AI has trained on it, the impact is irreversible.

For instance, LANDR’s Fair Trade AI Program explicitly states that once an artist opts in, they grant an irrevocable, sublicensable license for their music to be used in AI model training. The new AI-generated content produced from their work is 100% owned by the distributor and its partners, and artists are not entitled to any revenue from these outputs. Instead, they are only eligible for a 20% pro-rata share of any licensing revenue from AI training datasets—if the distributor chooses to license the AI training material at all.

The Double Standard: Protecting Their Own Rights

A particularly revealing part of Miss Krystle’s investigation was LANDR’s revised Terms of Service. While they require artists to give up their rights for AI training, they also explicitly forbid anyone from using their own sample libraries for AI development. This contradiction underscores how these companies recognize the value of intellectual property—yet they push artists into waiving their own rights while safeguarding their own assets.

What You Can Do to Protect Your Music

If you're an independent artist, be extremely cautious when signing up for any new programs from your distributor. Here’s how you can protect yourself:

1. Read the Fine Print: Always review the Terms of Service before opting into any AI-related programs.

2. Opt Out of AI Training: If your distributor has an AI training clause, explicitly opt out and document your decision.

3. Spread Awareness: Many artists may not realize what they are agreeing to. Tag your music distributor on social media and use the hashtag #NoAITraining to demand transparency.

4. Consider Alternative Distribution Options: Research and choose a distributor that respects your rights.

5. Seek Legal Advice: If you're unsure about contract terms, consult with an entertainment lawyer before agreeing to anything.

Final Thoughts: The Future of Music Rights

The rapid expansion of AI in the music industry is raising serious ethical and legal concerns. As artists, it is critical to stay informed, ask questions, and push for fair policies that protect creative ownership. Miss Krystle’s investigation highlights the urgent need for greater transparency from distributors, as well as stronger legal protections for independent artists.

With the rise of AI-generated music, ensuring that artists maintain control over their intellectual property is more important than ever. Stay vigilant, educate yourself, and don’t let the promise of short-term financial incentives cost you long-term ownership of your music.