Federal Appeals Court Rejects Fair Use For AI Training In A Closely Watched Copyright Case

Published: 9/30/2026

Source: Music Business Worldwide — IMPEL and IMPF AI Licensing Principles

IMPEL and IMPF have published seven principles for generative AI licensing, led by a non-negotiable demand that songs and compositions receive at least equal value to sound recordings unless other material factors justify a different split.

The framework covers payment for past uses, AI training, generated outputs, downstream exploitation, licensing scope, deductions, attribution and royalty reporting. It warns that limited pilots should not silently become precedents for broader commercial rights.

Why it matters: An AI music license may need separate permission for the composition and the master recording. Paying a record label does not automatically resolve songwriter and publisher rights.

IMPEL and IMPF say they are testing attribution technology with three companies, although they have not identified every participant or announced a universal implementation standard.

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