An AI “licensing and protection” platform called Vermillio has raised $16 million in a Series A funding round led by Sony Music Entertainment and DNS Capital.
Vermillio said on Monday (March 3) that it plans to use the funds to scale its operations and continue “building out solutions for a generative AI internet that enables talent, studios, record labels, and more to protect and monetize their content”.
Sony Music has previously worked with Vermillio, co-founded by entrepreneur Dan Neely, on a project with The Orb and David Gilmour in collaboration with Legacy Recordings, where fans could “remix” their album and create original artwork.
Neely, who recently made TIME’s list of 100 most influential individuals in AI, is said to have provided key guidance for the introduction of the landmark NO FAKES Act.
Commenting on participating in the funding round, Dennis Kooker, President, Global Digital Business, Sony Music Entertainment, said: “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.”
“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.”
Dennis Kooker, Sony Music Entertainment
Added Kooker: “Dan Neely and the team at Vermillio share our vision that prioritizing proper consent, clear attribution and appropriate compensation for professional creators is foundational to unlocking monetization opportunities in this space.
“We look forward to expanding our successful collaboration with them as we work to support the growth of trusted platforms by enabling secure AI solutions that are mutually beneficial for technology innovators, artists and rightsholders.”
Vermillio claims to be the first AI platform that “securely licenses IP and allows IP holders and talent to safely engage with generative AI technologies”.
The company achieves this via its ‘TraceID’ protection and third-party attribution tool, which Vermillio claims “enables talent and IP holders to take advantage of the benefits of Generative AI with secure control of their data and AI rights”.
According to Vermillio, TraceID “offers the ability to manage terms, conditions, and usage rights while capitalizing on new revenue streams made possible with Generative AI”.
Vermillio said that its team designed TracelD to “eliminate key concerns around consent, credit, and compensation with Generative AI”.
Monday’s announcement noted that Vermillio struck what’s claimed to be a “first-of-its-kind partnership with talent agency WME” in 2024 “to shield their clients from IP theft and deliver opportunities to monetize their name, image and likeness (NIL) by securely licensing their data”.
Meanwhile, to demonstrate “the unique opportunity that authenticated AI with TraceID presents”, Vermillio said that it launched a Spider-Verse AI engine with Sony Pictures where fans created their own unique digital version of themselves in the animation style of the Spider-Verse artists.
According to Vermillio, each of the 1.5 million unique fan creations during the project was tracked using TraceID and with the ability to trace back to the filmmakers’ source IP.
“We are setting a new standard for AI licensing — one that proactively enables consent, credit, and compensation for innovative opportunities.”
Dan Neely, Vermillio
“We are setting a new standard for AI licensing—one that proactively enables consent, credit, and compensation for innovative opportunities,” said Dan Neely, Co-Founder & CEO of Vermillio.
“With the support of an innovation leader like Sony Music, Vermillio will continue building our products that ensure generative AI is utilized 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.”Music Business Worldwide
