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Major Record Labels Negotiate Licensing Framework with AI Music Startups

Record companies hope to settle infringement suits through licensing deals that include fees plus equity stakes for AI music platforms.

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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.