LONDON (AP) – Universal Music Group and Udio Reach Settlement

Universal Music Group, along with the AI music platform Udio, has resolved a copyright infringement lawsuit, and the two companies have announced plans to collaborate on a new music production and streaming platform.

On Wednesday, they revealed that they’ve come to a “compensatory legal settlement.” This includes a new licensing agreement for recorded music and publishing, which aims to create additional revenue streams for artists and songwriters signed to Universal.

Udio has already made waves in the $20 billion music streaming market, with some record labels expressing concern over how such platforms might exploit artists’ works without fair compensation.

This latest agreement marks Universal’s first since it, along with Sony Music Entertainment and Warner Records, took legal action against Udio and another AI music generator called Suno for copyright infringement last year.

Lucien Grainge, Universal’s CEO, stated that the new agreements signify a commitment to supporting artists and songwriters through the adoption of new technologies, innovative business models, and diverse revenue options.

The financial specifics of the settlement haven’t been disclosed.

Udio, along with Suno, has been at the forefront of AI song generation technology, which allows users to create songs by inputting prompts into a chatbot-like interface. For those who may not have musical skills, they can easily request tracks in various styles, from classic rock to 1980s synth pop or West Coast rap.

These advancements have sparked discussions about AI’s role in music, raising apprehensions about the quality of content produced—often referred to as “AI slop.” This concern is underscored by the emergence of fictional bands misleading real artists.

In addition, Udio and Universal, who represent major artists such as Taylor Swift, Olivia Rodrigo, Drake, and Kendrick Lamar, announced the launch of a new AI subscription service set for next year.

This service will enable users to “customize, stream, and share music responsibly on the Udio platform” and provide educational resources on “authorized and licensed music.”

Andrew Sanchez, CEO of Udio, mentioned that the deal “empowers artists and fans,” aiming to merge AI technology with the music industry in a manner that genuinely supports creators.