Sony Music Backs AI Licensing Startup Vermillio with $16 Million Series A Funding

Sony-Backed AI Licensing Startup Vermillio Secures $16 Million in Series A Funding

At the heart of Vermillio's innovation is TraceID, a technology designed to provide secure licensing, attribution, and compensation for intellectual property in the age of AI. Vermillio, an AI licensing and protection platform, has successfully closed a $16 million Series A funding round, led by Sony Music Entertainment and DNS Capital. This investment will enable Vermillio to scale its operations and advance its technology, aimed at safeguarding and monetising creative content in the ever-evolving generative AI landscape. At the heart of Vermillio's innovation is TraceID, a technology designed to provide secure licensing, attribution, and compensation for intellectual property in the age of AI. Dan Neely, co-founder & CEO of Vermillio, emphasises the platform's mission to establish a new standard for AI licensing, ensuring that consent, credit, and compensation are prioritised. "With the support of an innovation leader like Sony Music, Vermillio will continue building our products to ensure generative AI is utilised ethically and securely. At this critical moment in determining the future of AI and how to hold platforms accountable, we are proud to protect the world's most beloved content and talent," Neely stated. "Sony Music is focused on developing responsible generative AI use cases that enhance the creativity and goals of our talent, protect their work, excite fans, and create new commercial possibilities," said Dennis Kooker, president, global digital business, Sony Music Entertainment. Vermillio mentioned its practical applications in collaborations with major industry players. For instance, the successful launch of a Spider-Verse AI engine with Sony Pictures, where fans created personalised digital avatars, showcased the use-case of TraceID in maintaining IP integrity while enabling fan engagement. The technology's ability to track and attribute content is also seen in projects with The Orb and David Gilmour of Pink Floyd, which allowed fans to remix their album. With this new funding, Vermillio is set to expand its reach and solidify its position as a leader in AI rights management, ensuring that the AI copyright battles will not be a waste of time.

Exclusive: Sony Music backs Vermillio's $16M Series A

Why it matters: Sony Music's first investment in AI licensing seeks to protect its artists and support them in responsibly using generative AI tools. How it works: Vermillio's TraceID tool monitors online content for use of intellectual property, as well as name, image and likeness. The platform can automatically send takedown requests and manage payments for licensed content. Context: CEO Dan Neely has worked in AI for more than 20 years. The serial entrepreneur sold his last startup, Networked Insights, to American Family Insurance in 2017 and founded Vermillio in 2019. Flashback: Prior, Vermillio raised $7.5 million in seed funding from angel investors. Zoom out: Some companies like Sony Music are seeking legal action on cases where generative AI impacts the core of IP companies. These companies want to protect and monetize creators and content along with nearly every other aspect of their businesses. What's next: Neely says Vermillio plans to expand to sports and work with major sports leagues this year. It's also releasing a free version of the product that shows whether someone is at high or low risk of AI copyright.