SoundCloud is engaged in licensing discussions with major labels and publishers, according to a report.
To date the platform has operated in a similar way to Google and YouTube under the Digital Millennium Copyright Act.
The legislation does not require the company to monitor content being uploaded by users for copyright infringement as long as there is a process in place to take down infringing material at the request of the rights-holder.
According to two sources talking to Digital Music News, however, steps towards licensing on the platform are on the way.
“[The major labels’ catalogue] is all over SoundCloud, and it’s essentially too hard to police but that doesn’t mean they won’t start,” said one insider. “If you look at what’s happening over at Google and YouTube, you have the BPI flooding Google and YouTube with takedown notices.
“SoundCloud doesn’t want to start that because they could get completely flooded. That’s just one way [the majors] will start a war.”
The BPI sent its 50 millionth takedown request to Google in November last year.
Piracy takedown notices to Google have increased 711% in just four years.