Why Musicians Are Frustrated With Label AI Licensing Deals
- Major record labels are licensing their music catalogs to artificial intelligence companies that they sued for copyright infringement just two years ago, according to recent industry reports.
- In 2024, Universal, Sony Music Entertainment, and Warner filed lawsuits against Suno and Udio for copyright infringement, alleging the AI firms trained their models on copyrighted songs across...
- While participating labels and AI platforms state that artists signed to their rosters can opt in to be credited and paid, the specifics remain unclear.
Major record labels are licensing their music catalogs to artificial intelligence companies that they sued for copyright infringement just two years ago, according to recent industry reports. Rival Udio has secured licensing deals with Universal Music Group and Warner, while competitor Suno has signed agreements with Warner, BMG, and Believe, as the companies pitch generative AI as a new revenue stream for artists.
From Copyright Lawsuits to Corporate Partnerships
In 2024, Universal, Sony Music Entertainment, and Warner filed lawsuits against Suno and Udio for copyright infringement, alleging the AI firms trained their models on copyrighted songs across multiple genres and time periods. Legal strategies shifted as settlements began the following year. Universal settled with Udio in October to become its partner, while Warner settled with both Udio and Suno in November. Jane Davidson, an entertainment attorney at Nolan Heimann, explained that labels pursued settlements because they anticipate greater profits from licensing music rather than pursuing litigation outcomes. Additional partnerships expanded across the industry. Udio struck agreements with Merlin, which licenses music on behalf of independent labels, and independent publisher Kobalt. Suno reached deals with BMG in August and Believe this month. Spotify, which was not involved in the initial lawsuits, also struck licensing deals with Universal and Merlin. Not all major players joined the settlements, however. Sony Music Entertainment filed a second lawsuit against Udio regarding more than 30,000 recordings and continues active litigation against Suno alongside Universal. Furthermore, Sony and Universal filed a new lawsuit alleging that Suno’s latest model continues to infringe on copyrighted works. In July, a Munich court ruled against Suno in a case brought by GEMA, which collects royalties for German songwriters and publishers.
Artist Concerns and the Opt-In Debate
While participating labels and AI platforms state that artists signed to their rosters can opt in to be credited and paid, the specifics remain unclear. None of the companies have disclosed artist compensation rates, opt-in totals, or the level of individual musician input regarding how their work is utilized. This lack of transparency has sparked anxiety among performers regarding their livelihoods. Matt Evans, a brass instrumentalist who has performed on programs like The Late Late Show With James Corden and Netflix’s Dr. Seuss’s Red Fish, Blue Fish, told reporters that the situation feels like an ominous cloud where a performance could be reused without a negotiated choice for additional compensation. Legal pushback extends beyond individual artists. In June, the American Federation of Musicians filed a lawsuit against Universal and Warner, alleging the labels licensed recordings featuring union members to Suno and Udio without compensating those musicians or identifying the specific recordings involved. The labels have since filed motions to dismiss the case. Meanwhile, a global coalition of 31 music organizations, including the European Music Managers Alliance, Irving Azoff’s Music Artists Coalition, and Songwriters of North America, issued an open letter demanding an immediate halt to what they describe as the misuse of creator rights.
Platform Models and Distribution Differences
The platforms entering these agreements utilize distinct operational models for users creating full songs from text prompts. Udio operates under a walled-garden approach preferred by Universal, which prevents users from downloading or distributing tracks created on the platform elsewhere. Spotify plans to introduce an AI tool as a paid add-on for Premium subscribers, though the company has not announced a launch date. In contrast, Suno permits users to download their creations and release them externally, utilizing download caps and watermarks to curb abuse, with distribution supported through Believe and TuneCore.