In May, the family of Ozzy Osbourne announced that an AI-powered avatar of the late singer will debut in the UK by the end of summer. The project has renewed focus on the legal and commercial frameworks governing name, image, and likeness (NIL) rights in the music industry.
NIL rights, which sit at the intersection of intellectual property and data privacy, are central to avatar and hologram productions. The legal status of these rights varies significantly across jurisdictions. In the UK, a landmark case saw Rihanna successfully challenge retailer Topshop for using her image without permission, a ruling that helped solidify protections for artists.
Technological advances are extending the relevance of NIL rights beyond an artist’s lifetime, as digital replicas can perform long after death. The UK government has proposed a standalone personality right to address deepfakes, a move that could further reshape the legal landscape. Many issues raised by these technologies remain unresolved.
Commercial potential and the ABBA Voyage model
Avatar and hologram shows can generate new revenue streams for artists, estates, and investors. The success of ABBA Voyage demonstrated the scale of demand for top-tier virtual performances, allowing the group to present a defining era of their career to new generations of fans. Such productions can be continually updated with experiential technology like virtual reality.
Structuring NIL rights agreements
Realising these opportunities requires careful legal structuring. Transactions and agreements must be future-proofed to preserve the artist’s original vision and values. Parties acquiring NIL rights should ensure that talent and recording agreements capture the necessary rights, and that publishing and distribution deals do not inadvertently grant broader permissions. Artists’ representatives are advised to seek comprehensive protection for their client’s commercial identity, including voice and image.
Gaming and the next frontier
The licensing of avatars and performances in gaming ecosystems highlights the complex interplay of pitfalls and possibilities surrounding NIL rights. Games platforms and large-scale experiential social environments are a key focus for artists and management teams exploring new revenue streams.
