AI Protection Platform Vermillio Secures $16M in Series A Funding Led by Sony Music.
Vermillio, a pioneering platform for AI licensing and content protection, has raised $16 million in Series A funding, with Sony Music Entertainment and DNS Capital leading the investment. The funding will fuel Vermillio’s expansion as it develops cutting-edge solutions to help talent, studios, and record labels safeguard and monetize their content in the rapidly evolving world of generative AI.
Setting the Standard for Ethical AI Licensing
Dan Neely, Co-Founder and CEO of Vermillio, emphasized the company’s commitment to ethical AI usage, stating:
“We are setting a new standard for AI licensing — one that proactively enables consent, credit, and compensation for innovative opportunities. 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.”
As AI-generated content reshapes the entertainment industry, Vermillio aims to hold platforms accountable while protecting the intellectual property (IP) of creators and talent. The company’s flagship technology, TraceID, allows content owners to control how their work is used, ensuring transparent licensing, attribution, and compensation.
Sony Music’s Commitment to AI Accountability
Sony Music Entertainment, a leader in responsible AI innovation, sees Vermillio as a crucial partner in shaping the future of AI in the entertainment industry.
“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,” said Dennis Kooker, President, Global Digital Business at Sony Music Entertainment.
Strategic Partnerships and High-Profile Collaborations
Vermillio has already partnered with top industry players to implement its AI licensing solutions:
- WME Partnership: Working with talent agency WME, Vermillio helps clients protect their name, image, and likeness (NIL) from unauthorized AI-generated content.
- Sony Pictures Collaboration: Vermillio developed a Spider-Verse AI engine, allowing fans to create digital avatars in the film’s animation style. Over 1.5 million fan creations were securely tracked using TraceID.
- Music Industry Innovations: Vermillio teamed up with Sony Music and Legacy Recordings on a project featuring The Orb and Pink Floyd’s David Gilmour, enabling fans to remix an album while maintaining clear ownership records through TraceID.
AI Protection and Policy Leadership
With generative AI projected to become a $1 trillion industry by 2026 (Bloomberg, Goldman Sachs), concerns about IP theft, deepfake misuse, and lost revenue have grown. Vermillio’s TraceID technology addresses these challenges by offering:
- AI-generated content monitoring
- Real-time alerts and takedown management
- AI licensing audits
- Payment management for AI-driven works
Neely, named to TIME’s 100 Most Influential in AI, has been actively shaping AI policy. He played a key role in the development of the NO FAKES Act, a proposed law to protect individuals from unauthorized AI-generated deepfakes.
A New Era for AI Licensing
As the entertainment industry grapples with the impact of generative AI, platforms like Vermillio are proving essential in balancing innovation with ethical content use. With backing from Sony Music and other investors, Vermillio is well-positioned to lead the charge in AI licensing, ensuring creators remain in control of their work.
