LONDON – Universal Music Group and Udio Settle Copyright Lawsuit
Universal Music Group has resolved a copyright infringement lawsuit with the AI music generation platform Udio. The two companies have announced plans to work together on a new music creation and streaming service.
On Wednesday, they revealed that a “compensatory legal settlement” was reached, along with a new licensing agreement for recorded music and publishing, which aims to create additional revenue streams for artists and songwriters under the record labels.
As part of the settlement, Udio has immediately stopped users from downloading songs they generate, inciting backlash from their paying subscribers who have expressed dissatisfaction.
This is Universal’s first significant move since last year when it, along with Sony Music Entertainment and Warner Records, filed a lawsuit against Udio and another AI service, Suno, over copyright issues.
Lucien Grainge, CEO of Universal, stated that these new agreements reflect their commitment to support artists and songwriters. He mentioned that embracing new technology and diversifying revenue sources is crucial.
Details on the financial aspects of the settlement have not been disclosed.
Additionally, Universal announced on Thursday a partnership with Stability AI to enhance professional music production tools.
Udio and Suno have been at the forefront of AI music generation technology, allowing users to create songs based on simple prompts in various genres, such as classic rock or 1980s synth pop.
With this collaboration, Universal—home to artists like Taylor Swift and Drake—plans to introduce a new AI subscription service next year.
Andrew Sanchez, CEO of Udio, mentioned that users will soon be able to remix and mash up their favorite tunes, but, unfortunately, direct downloads from the platform are no longer offered.
The companies shared that AI-generated songs on Udio will now be “managed within a walled garden,” which has angered many users. They’ve taken to forums to voice their frustration, feeling that their freedom to download was unfairly taken away. Some are even canceling their subscriptions, unhappy with the changes.
This settlement underscores how the emergence of AI music tools like Udio is shaking up the music streaming industry, valued at around $20 billion. Record labels have raised concerns that these platforms exploit artists’ work without providing due compensation.
The situation has sparked discussions about the implications of AI in music, especially regarding the potential for low-quality, mass-produced content. This has been brought to light by the existence of fictitious bands posing as real artists.
In its lawsuit against Udio, Universal claimed that some AI-generated tracks closely resembled well-known songs from its catalog, including classics like Frank Sinatra’s “My Way” and “My Girl” by the Temptations. They even provided examples where prompts led to very similar melodies and chord progressions of these iconic tunes, which fueled their legal claims.
