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UMG Settles With Udio, Paves Way for Licensed AI Music Platform in 2026

The deal points to a shift from lawsuits to paid, opt‑in AI music licenses.

Overview

  • Universal Music Group and Udio ended their copyright fight with a compensatory legal settlement and new recording and publishing licenses.
  • The companies plan a subscription service trained on authorized music that lets users remix, mash up, and customize tracks within a controlled environment.
  • Udio paused downloads and moved current creations into a fingerprinted, filtered walled garden during the transition, prompting user backlash and cancellations.
  • Participating UMG artists and songwriters can opt in and will be compensated for training use and platform outputs under the new framework.
  • Sony Music and Warner Music remain in active litigation with Udio, and all three majors continue their case against Suno, as UMG also unveils a separate tools partnership with Stability AI.