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UMG Settles With Udio, Sets Licensed AI Music Platform for 2026

The move signals a pivot to licensed AI tools with new revenue opportunities for artists.

Overview

  • Universal Music Group and Udio reached a compensatory legal settlement and new licensing deals covering recorded music and publishing.
  • The companies said a subscription service will launch next year on Udio, trained on authorized and licensed recordings to let users customize, stream, and share music.
  • Financial terms were not disclosed.
  • The agreement is the first since UMG, Sony Music, and Warner Records sued Udio and rival Suno in 2024 over alleged mass copying of label recordings.
  • Udio and Suno have argued that training on copyrighted songs qualifies as fair use, while a separate Manhattan court this month dismissed Drake’s defamation case involving UMG.