Kobalt Signs Licensing Deal With Spotify for AI Fan Remixing Tool

Kobalt has become the latest music company to strike a licensing deal with Spotify covering fan-made AI covers and remixes on the streaming platform.

Announced on Thursday (Aug. 13), the agreement covers an upcoming AI remixing tool on Spotify that will allow participating Kobalt songwriters to share in the revenue generated from remixes and covers using their songs. Once introduced, the tool will be available as a paid add-on for premium subscribers.

Prior to the Kobalt deal, Spotify signed AI remix licensing deals with UMG in May and Merlin earlier this month. The tool was announced in May as part of Spotify’s Investor Day presentation.

Charlie Hellman, senior vp and global head of music at Spotify, said in a statement: “Covers and remixes begin with the song, which makes music publishers and songwriters essential partners in building this tool the right way. This agreement with Kobalt is grounded in consent, credit, and compensation for the songwriters who take part, and every creation drives listeners back to the original song. We look forward to welcoming more partners as we continue to build.”

Added Laurent Hubert, CEO at Kobalt: “Fans have always sought deeper engagement with the songs they love, whether through listening or creating their own covers and remixes. Spotify’s new AI-powered creative tools are built on a foundation of ethical training, fair compensation, and intentional guardrails. This agreement is designed to ensure our songwriters can connect with their audience in unprecedented ways, while directly benefiting from the creative opportunities these new features provide.”

In October, Spotify announced a partnership with five music companies — Universal Music Group, Sony Music, Warner Music Group, Believe and indie trade body Merlin — on “artist-first” AI music tools. The same announcement unveiled a set of four principles pertaining to these AI tools, including forging partnerships with labels, distributors and publishers; allowing artists, songwriters and other rightsholders to opt in; creating new revenue streams for creators and rightsholders; and emphasizing the tools as ways to foster connections between artists and fans.

More recently, a coalition of music organizations including the RIAA, IFPI and American Association of Independent Music (A2IM) proposed creating labels to tag AI songs on streaming services. The system would include two labels: “AI-generated” for songs entirely created using AI; and “AI-assisted” for songs that partially use AI. Under the proposal, disclosures of AI use would be voluntary.