Overview

• Universal Music Group, Warner Music Group and Sony Music Entertainment are in ongoing negotiations with AI startups Udio and Suno to license their catalogs for generative music applications.
• Record labels are seeking license fees plus equity stakes in Udio and Suno as part of the discussions to compensate artists and secure a share in the companies’ growth.
• The talks aim to resolve the RIAA-led lawsuits filed last year that accuse the AI firms of infringing copyrights by training on millions of unlicensed tracks.
• Udio and Suno employ generative AI models trained on extensive music datasets to create new compositions in response to user prompts, prompting labels to demand usage controls.
• A successful deal could set a blueprint for balancing innovation and artist rights in the era of AI-generated music.