Vermillio Lands $16M to Guard Artists with AI Tools
Image Credit: Alfonso Scarpa | Splash
The intersection of artificial intelligence and intellectual property rights is sparking both innovation and heated debate, as highlighted by recent developments in the United States and the United Kingdom. From a Chicago-based startup securing significant funding to protect artists to prominent musicians protesting looming copyright law changes, the AI landscape is proving to be a battleground for creativity, technology, and legal frameworks.
[Read More: Suno’s V4 AI Music Model Sets New Standards Amid Copyright Lawsuit and Industry Debate]
Vermillio Raises $16 Million to Safeguard Artists with AI Tools
Vermillio, a Chicago-headquartered platform focused on protecting intellectual property, has secured US$16 million in a Series A funding round. The investment, co-led by DNS Capital and Sony Music Entertainment, underscores a growing interest from major content companies in leveraging AI to both defend and monetize creative works. Executives shared the news exclusively with Axios, framing it as a pivotal step in the evolving relationship between AI and the arts.
Vermillio’s flagship tool, TraceID, offers a sophisticated solution for monitoring online content. It tracks the use of intellectual property, as well as an individual’s name, image, and likeness, across digital platforms. The system is designed to issue automated takedown notices for unauthorized usage and facilitate payments for licensed material.
The company’s work has already yielded creative collaborations. For instance, Vermillio teamed up with Sony Pictures to enable fans to generate AI-crafted characters inspired by the Spider-Verse franchise. Additionally, in partnership with Sony Music, Legacy Recordings, The Orb, and David Gilmour, it developed AI-driven tools to produce music tracks and artwork inspired by Metallic Spheres In Colour. Dennis Kooker, president of global digital business at Sony Music, praised the ethical approach, noting that a proof-of-concept project with Gilmour and The Orb demonstrated how generative AI and intellectual property could coexist responsibly when properly trained.
Founded in 2019 by Dan Neely—a serial entrepreneur with over two decades of AI experience—Vermillio emerged from his vision to establish “guardrails for the generative internet”. Neely’s motivation was sparked by the rise of deepfake technology, such as DeepFaceLab, and high-profile incidents like rapper Jay-Z’s fight against an unauthorized AI-generated version of himself. The company, which previously raised US$7.5 million in seed funding, plans to expand into the sports sector and introduce a free version of its product to assess AI copyright risk levels.
[Read More: Nvidia Fugatto: AI Tool Creating Unheard Sounds and Redefining Music Production]
Sony Music’s Dual Approach: Lawsuits and Investments
Sony Music’s involvement with Vermillio marks its first investment in AI licensing, reflecting a broader strategy to balance legal action with technological adoption. Alongside Universal Music Group and Warner Records, Sony Music recently filed lawsuits against AI startups Suno and Udio, alleging copyright infringement. These legal efforts highlight the music industry’s concerns over unauthorized use of its assets in AI training datasets. However, Sony’s investment in Vermillio signals a willingness to embrace AI as a tool for artist empowerment and fan engagement, provided ethical standards are upheld.
This dual approach mirrors a wider trend among content companies. While seeking to protect their intellectual property from exploitation, they are also exploring how AI can enhance creative processes and deepen audience connections—an acknowledgment that outright resistance to the technology may not be viable in the long term.
UK Artists Sound Alarm Over Proposed Copyright Law Changes
Across the Atlantic, a different narrative is unfolding as over 1,000 prominent UK artists, including Paul McCartney, Kate Bush, Annie Lennox and Damon Albarn, rally against proposed changes to the nation’s copyright laws. The UK government is considering a framework that would allow AI developers to use online content—such as music, art and photography—to train their models unless rights holders explicitly opt out. A consultation on these proposals, set to conclude on February 25, aims to clarify how artists can license their work and receive compensation, but critics argue the opt-out model is impractical and threatens creators’ livelihoods.
Paul McCartney, the legendary former Beatle, voiced his apprehension in an interview with the BBC. He warned that the changes could enable AI to “rip off” the work of emerging musicians, leaving them without ownership or financial reward. Citing his own iconic song Yesterday, McCartney questioned why profits from such works should not go to their creators rather than third parties benefiting from AI exploitation. “You’re supposed to protect us”, he urged the Labour Government, emphasizing its responsibility to safeguard the creative community.
In a symbolic protest, artists released a “silent album” titled Is This What We Want?, featuring 47 minutes of ambient noise to illustrate a world devoid of human-made music. Organized by Ed Newton-Rex, the project underscores fears that the government’s plan would effectively hand over musicians’ life’s work to AI firms without consent or compensation. Dr. Jo Twist of the BPI, Britain’s music industry trade body, echoed these concerns, warning that the proposal could legalize the “plundering” of creative works, jeopardizing an industry that contributed £7.6 billion to the UK economy in 2023.
[Read More: YouTube Launches AI Music Remixes, Live-Stream Reminders, and Shorts Conversion Updates]
Government Responds Amid Mounting Criticism
The UK government has defended its consultation process, asserting that its goal is to provide “legal certainty” through a copyright regime that balances creators’ control with AI innovators’ access to data. A spokesperson emphasized that no decisions would be finalized until the music industry’s input is fully considered and a system ensuring “clarity, control and transparency” for artists is achieved. However, the opt-out approach has drawn sharp criticism for placing the burden on creators to protect their work, a task many deem unfeasible given the scale of online content.
[Read More: Randy Travis Reimagined: AI Breathes New Life into Country Legend’s Voice]
Source: The Sun, Axios, The Times, Financial Times
