Sony Music co-leads funding for AI licensing startup Vermillio
Image credits: Alexander Schimmeck
Vermillio raises $16 million in a Series A funding round, backed by Sony Music.
The AI licensing and protection platform Vermillio has secured $16 million in Series A funding, led by Sony Music Entertainment and DNS Capital. As major labels look to safeguard their intellectual property (IP) while embracing generative AI technologies, this move highlights the growing focus on rights management driven by AI.
What is Vermillio?
Claiming to be the “first AI rights management platform”, Vermillio is designed to help remedy the issues with generative AI for artists, studios, labels, and more. Its TraceID system allows IP holders to track and control their content, ensuring proper attribution, consent, and compensation.
Vermillio’s system enables IP holders to manage usage rights while also creating new revenue opportunities, addressing “key concerns around consent, credit, and compensation with Generative AI”.
“We are setting a new standard for AI licensing- one that proactively enables consent, credit, and compensation for innovative opportunities.”
Dan Neely, Co-founder & CEO of Vermillio
Vermillio’s AI initiatives in action
Vermillio has previously demonstrated its AI and TraceID capabilities in previous collaborations. Working alongside Sony Pictures in a campaign which allowed fans to generate their own Spider-Verse-style digital avatar, over 1.5 million creations were tracked and traced back to their source IP.
Vermillio has also worked with Sony Music on a project featuring The Orb and David Gilmour, where fans could remix their album and create original work.
Why would Sony Music partner with Vermillio?
Generative AI poses both opportunities and risks for the music industry. While AI can unlock creative possibilities, it also raises concerns about the unlawful use of copyrighted material and fair compensation for creators. Estimates suggest that AI-generated content could lead to a €10 billion revenue loss for music creators over the next five years.
Sony Music is also focused on developing AI solutions that project artists’ rights while fostering innovation. By partnering with Vermillio, Sony can help artists to maintain control over their work without being exploited by AI companies, while creating commercial opportunities for them.
“Dan Neely and the team at Vermillio share our vision that prioritising proper consent, clear attribution and appropriate compensation for professional creators is foundational to unlocking monetisation opportunities in this space.”
Dennis Kooker, President, Global Digital Business, Sony Music Entertainment
Vermillio’s future plans
With Sony Music’s backing, Vermillio plans to scale its operations and further develop solutions that ensure generative AI is used ethically, while protecting and benefiting existing works.
As the music industry continues to grapple with the impact of AI, this investment highlights a push toward responsible AI innovation that still benefits original creators.