Your commercial news round-up: AI music lawsuit, Shein, energy price cap, greenhouse gas emissions

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Are you up to date with this week’s commercial news? Major record labels take legal action against AI music, Shein is in the process of listing on the London Stock Exchange, gas and electricity prices are expected to fall this summer and air freight causes surge in greenhouse gas emissions. Read this week’s commercial news round-up to find out more.

• Major record labels, including Universal Music Group Recordings and Warner Records, have taken legal action against AI song generators Suno and Udio, alleging copyright infringement. The startups, which utilise AI, have been accused of exploiting recorded works by producing music that closely resembles existing works. Among the artists allegedly affected by this are Chuck Berry and Mariah Carey. The Recording Industry Association of America has filed lawsuits in federal courts – one in Boston against Suno AI and another in New York against Uncharted Labs, the developer of Udio AI. The lawsuits seek compensation of $150,000 (£118,200) per work and to protect the artists’ rights and revenue. The CEO of Suno AI, Mikey Shulman, said that the startup’s technology generates “completely new outputs” rather than recycling “pre-existing content” but their efforts to explain this to labels were met with the “old lawyer-led playbook”. The legal battle highlights the intersection of technology and intellectual property rights, as AI-generated music becomes more prevalent. According to RIAA’s chair and CEO, Mitch Glazier, “unlicensed services like Suno and Udio” that exploit artists’ work for profit without consent or payment are hindering the potential of “genuinely innovative AI for us all”.
   
• Shein has taken a significant step towards listing on the London Stock Exchange (LSE). The Chinese fast-fashion giant filed the confidential papers with the Financial Conduct Authority (FCA). Filling these papers is the initial step towards a potential listing on the LSE but it doesn’t guarantee that the company will ultimately list there. The FCA and Shein have declined to comment on the potential listing, which could value the company at approximately £50 billion. Initially, a US listing seemed likely, but scrutiny over the firm’s ties to China prompted a reconsideration. Earlier this month, US Senator Marco Rubio warned the UK about Shein’s “grave ethic concerns”, urging thorough investigation and investor protection. The online retailer has been under scrutiny in the past for environmental impact issues relating to its business model, as well as allegations of forced labour. Meanwhile, UK MPs have also expressed concerns but believe the listing would provide the opportunity for closer oversight if Shein lists in London.
   
• Gas and electricity prices are expected to fall by 7% this summer. Under the new energy price cap, the typical annual dual-fuel bill paid by direct debit will be £1,568 per year, a drop of £122. While this marks the lowest bills in two years, they still remain approximately £400 higher than three years ago. The energy price cap applies to 28 million households in England, Scotland and Wales and is set every three months by the energy regulator Ofgem. For the period between 1 July and 30 September, gas prices will be capped at 5.48p per kilowatt hour (kWh), and electricity at 22.36p per kWh. It’s important to note that the cap doesn’t apply in Northern Ireland, which has its own energy market, but prices are also decreasing there. Ofgem is exploring changes to the energy cap system, including variable pricing during high-demand periods.
   
• Demand for speedy delivery has led to a significant increase in air freight flights and, subsequently, greenhouse gas emissions, according to a new analysis. There were 300,000 more flights transporting goods in 2023 compared to 2019, representing an increase in flight volume of almost 30%. The rise in air freight has caused a 25% increase in greenhouse emissions for the same period. The change is attributed to several factors, including shifts in the post-pandemic economy and evolving consumer expectations. Rapid shipping expectations in e-commerce, driven by services such as Amazon Prime, contribute to this intensity. One of the authors of the analysis, Dr Devyani Singh, warned that this surge poses a new threat to both the climate and human health and urged air freight companies to substitute air cargo for “lower-carbon modes of transport such as marine shipping or rail”. Air freight produces approximately 80 times more carbon than shipping by sea or truck, making the latter options significantly better for the environment.

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