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UMG Settles Udio Lawsuit, Strikes Licensed AI Music Deal for 2026 Platform

The pact signals a move toward licensed, compensated AI training with tighter controls on user creations.

Overview

  • Universal Music Group and Udio said they reached a compensatory legal settlement and new licensing deals for recorded music and publishing.
  • A subscription AI music service is slated for 2026, with models trained only on authorized and licensed works.
  • Udio has halted downloads and confined user-made songs to a fingerprinted, filtered walled garden, prompting complaints and reported cancellations.
  • Participating UMG artists and songwriters can opt in and will be paid for training use and model outputs, though financial terms were not disclosed.
  • Sony Music and Warner remain in court against Udio and Suno, as UMG separately unveiled a partnership with Stability AI to build professional tools.