The traditional music royalty system, built for human creators, is breaking down. As AI transitions from a simple tool to a genuine co-creator, it raises a billion-dollar question that the industry is not prepared for: when an algorithm helps write a song, who owns it and who gets the money? This isn't just a theoretical problem. The lines of authorship are blurring between the user, the AI developer, and the countless artists whose work was used for training. Without a new framework, the financial backbone of the music industry is at risk, creating legal chaos for artists, labels, and tech companies alike. A real-world case: Imagine a hit song made with AI. Who gets the check? German performance rights organization GEMA is already suing AI music company Suno, kicking off a massive legal battle over this very issue. How can creators and developers navigate this minefield without clear rules? In This Episode, We Explore: - Why can't old copyright laws handle AI music? - Who is the legal 'author' of a song co-written with an algorithm? - Should the AI developer get a cut of the royalties? What about the original artists whose music trained the AI? - What are fractional royalties and could they be the future for AI music? - How are giants like YouTube and PROs like GEMA already trying to shape the new rules? - If you use an AI music tool, do you actually own the song you create? - Could a new "AI-assisted" category in royalty systems solve the problem? - What are the different business models emerging for licensing AI-generated music? Follow my YouTube: https://www.youtube.com/@chenran818 or listen to my music on Apple music, Spotify or other platforms: https://ffm.bio/chenran818