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AMAZON AND UNIVERSAL MUSIC TACKLE ‘UNLAWFUL’ AI-GENERATED CONTENT

By PYMNTS  |  December 23, 2024
 | 



Amazon and Universal Music Group (UMG) have expanded their partnership with an
eye toward AI.

The tech giant and the record label announced Monday (Dec. 23) they were working
to combat the use of “unlawful” artificial intelligence (AI)-generated content,
while also guarding artists against fraud and misattribution.

“UMG will also collaborate with Amazon Music as it continues to expand in audio,
including further innovation in audiobooks, audio and visual programming, and
its investment in livestreamed content that has connected millions of fans with
their favorite artists across all genres and corners of the world,” the
companies said in a news release.

Earlier this year, UMG joined fellow record companies Sony Music Entertainment
and Warner Music Group in suing a pair of AI music startups, Suno and Udio,
accusing them of unauthorized use of copyrighted material.

The companies have said that their use of copyrighted recordings to train their
systems falls under the “fair use” protection of U.S. copyright law. They also
characterize the lawsuit as an attempt by the record labels to suppress
competition.

As noted here at the time, although AI promises to enhance some areas of
eCommerce, such as personalized recommendations or virtual shopping assistants,
the litigation spotlights the importance of balancing innovation with respect
for intellectual property.

“As the legal proceedings unfold, eCommerce businesses will be watching
closely,” that report said. “The outcome could influence how AI is integrated
into online retail platforms, potentially leading to more stringent guidelines
for using AI-generated content in commercial applications.”

The lawsuit is one of several legal cases involving the use of AI and
copyrighted materials, leading experts to argue that the issue underscores the
need for clearer guidelines and protections in the AI field.

“AI presents unique copyright concerns for businesses, primarily because it can
produce content that closely resembles or ‘copies’ human-generated content, such
as articles, publications, images and music,” Star Kashman, a cybersecurity and
privacy lawyer, said in an interview with PYMNTS.

“The use of AI-generated creations raises complex questions about ownership and
copyright, as these creations often use datasets that include copyrighted works
of art and may infringe upon these copyrights.”

And some companies have developed tools to alleviate the problem, such as
Adobe’s video creation offering, announced earlier this year.

“This tool enables faster content creation and experimentation, all while
ensuring that what is being produced is safe for commercial use,” Robert
Petrocelli, chief product and technology officer at Vimeo, told PYMNTS in
October.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.




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KLARNA TO BECOME A DEFAULT PAYMENT METHOD FOR WOOPAYMENTS MERCHANTS

By PYMNTS  |  December 23, 2024
 | 



Klarna will be offered as a default payment method to merchants using the
WooPayments solution offered by eCommerce platform WooCommerce.

Klarna is currently offered only as an alternative payment option that can be
added at the request of a retailer, the companies said in a Friday (Dec. 20)
press release.

The change is part of an expanded partnership between the two companies,
according to the release.

“Offering flexible payments acceptance has become such an important tool for
merchants to increase cart values and drive sales,” Woo Head of Payments Web
Griebel said in the release. “We’re thrilled to partner more deeply with Klarna
to give store owners easy access to buy now, pay later and other purchase
financing options for their customers.”

Klarna’s global payments network offers consumers options that include immediate
payments; short-term, interest-free BNPL; and longer-term financing, according
to the release.

“Our goal is to have Klarna at every checkout, everywhere, for every need, at
any time,” Klarna Chief Commercial Officer David Sykes said in the release.
“This expanded partnership takes us closer to that vision, establishing Klarna
as the go-to payment option for tens of thousands of retailers globally.”

Buy now, pay later is gaining traction as a preferred payment method, according
to the PYMNTS Intelligence report “‘Adjustable’ Is the New ‘Agreeable’: BNPL
Flexibility for Subscription Success.”

The report found that 16% of all consumers — and 39% of millennials — said they
used BNPL within the past year.

Klarna released half-year earnings in August showing its revenues up 27% as the
number of its merchant partners grew.

“Klarna’s massive global network continues to expand rapidly, with millions of
new consumers joining and 68,000 new merchant partners,” Klarna CEO Sebastian
Siemiatkowski said in an Aug. 27 press release.

In other recent partnerships, eBay said Dec. 12 that it is making Klarna’s BNPL
payment options available to its shoppers in six more European countries after a
successful launch in Germany; Lenovo said in November that it enables shoppers
in 15 European countries to use Klarna’s flexible payment methods for purchases
on Lenovo.com; and Staples said in November that it now offers Klarna’s flexible
payment options to customers shopping online at Staples.com.



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