Udio, a platform for generating songs with artificial intelligence, announced it will provide users a 48-hour window starting Monday to download their creations before it switches to a new business model due to a legal settlement.
This decision follows Udio’s recent settlement of copyright infringement claims filed by Universal Music, which represents artists like Taylor Swift, Olivia Rodrigo, Drake, and Kendrick Lamar.
There’s growing tension in the industry, with many AI companies facing numerous copyright lawsuits. The Chamber of Progress, a tech industry lobbying group, recently urged President Donald Trump to sign an executive order enabling federal attorneys to get involved in ongoing legal disputes to defend the generative AI sector’s use of copyrighted material.
The group highlighted over 50 pending federal cases, arguing that the outcomes could lead to severe penalties, risking the future of AI innovation. At the same time, artists contend that these AI tools jeopardize their income and work.
A significant case involved Anthropic, which settled claims from authors for $1.5 billion—equating to $3,000 for each book—accused of illegally using nearly half a million works to develop its chatbot.
The specific financial details of Udio’s agreements with Universal were not disclosed, but both companies plan to collaborate on a new streaming service.
As part of the agreement, Udio has abruptly halted users’ ability to download their songs, leading to disappointment and frustration among subscribers, who feel caught off guard by the change. In a Reddit post, Udio acknowledged the distress this decision caused and indicated that it understands users’ feelings of betrayal and restrictions on their music.
Despite the backlash, Udio reiterated its commitment to stopping downloads as it transitions to the new platform next year and plans to allow users to keep past creations only during the specified timeframe starting at 11 a.m. Eastern time Monday.
In its communication, Udio described itself as a small player in a complicated and ever-changing industry, emphasizing the importance of direct partnerships with artists and songwriters for future growth.
The settlement marks the first of its kind since Universal, alongside Sony Music and Warner Records, filed a lawsuit against Udio and another AI music generator, Suno, for copyright violations last year.
Udio and Suno have pioneered technology that creates songs based on user prompts entered in a chat-like interface, allowing even those without musical skill to generate tunes in various styles—from classic rock to 1980s synth-pop.
Record labels accuse these platforms of exploiting artists’ recorded works without proper compensation.
Universal aimed to illustrate how AI-generated songs from Udio closely mimic well-known Universal classics, such as Frank Sinatra’s “My Way” and ABBA’s “Dancing Queen,” in its lawsuit.
The Artist Rights Alliance, a group of musicians, remarked that the Universal-Udio settlement could signal a positive development toward establishing a legitimate AI marketplace. However, they expressed concerns over whether independent artists and songwriters would receive adequate protection against AI practices that could profoundly threaten their professions.
They emphasized the need for licensing as the only path for AI that doesn’t endanger the future of art and culture, asserting that such assurances should extend to all music creators, not just major corporate entities.
