Overview

• Universal Music Group, Warner Music Group and Sony Music Entertainment are in advanced negotiations to license their catalogs to AI startups Udio and Suno, potentially resolving their ongoing copyright lawsuits.
• Record labels are pushing to collect license fees and secure small equity stakes in Udio and Suno as conditions for dropping their legal claims.
• Udio and Suno, backed by investors including Andreessen Horowitz and Lightspeed Venture Partners, are seeking flexible, affordable licensing terms to support generative music experimentation.
• The Recording Industry Association of America’s lawsuit seeks up to $150,000 per infringed work, exposing the startups to potential damages totaling billions of dollars.
• Observers say a successful agreement could establish a framework for compensating artists and guide future negotiations between music rights holders and AI developers.