Warner Music & Udio: Copyright Lawsuit Settled, AI Music Deal Signed

Warner Music Group and Udio Reach Copyright Settlement

Warner Music Group (WMG) has resolved a copyright dispute with the AI music startup, Udio. The announcement was made by the label on Wednesday.

Alongside the settlement, the companies have established a licensing agreement. This agreement will facilitate the development of an AI-powered music creation service, scheduled for release in 2026.

AI-Driven Music Platform Details

WMG detailed that the forthcoming platform will be a “next-generation music creation, listening, and discovery” system. It will be powered by generative AI models.

These AI models will be trained utilizing music that has been properly licensed and authorized. This ensures legal compliance and respect for copyright.

The platform is designed to generate “new revenue streams” for both artists and songwriters. Simultaneously, it will safeguard their intellectual property rights.

User Capabilities and Artist Compensation

The subscription-based service will empower users to create remixes, covers, and original songs. This will be achieved through the utilization of artist voices and songwriter compositions, with participation being optional.

Warner Music Group emphasizes that the platform will guarantee proper credit and financial compensation for artists and songwriters whose work is used.

Executive Statements

“We’re unwaveringly committed to the protection of the rights of our artists and songwriters,” stated WMG CEO Robert Kyncl. “Udio has taken meaningful steps to ensure that the music on its service will be authorized and licensed.”

Kyncl further explained that this collaboration is consistent with WMG’s broader strategy. This strategy focuses on responsibly harnessing the potential of AI to foster creativity and commercial opportunities.

“This partnership is a crucial step towards realizing a future in which technology amplifies creativity,” said Udio co-founder and CEO Andrew Sanchez.

Sanchez added that the platform will allow fans to collaborate with their favorite artists. This will enable the creation of extraordinary music within a framework that prioritizes artist control and connection.

WMG Artist Roster

Warner Music Group’s impressive roster of artists includes prominent names such as Lady Gaga, Coldplay, The Weeknd, and Sabrina Carpenter.

Industry Shift and Ongoing Negotiations

This settlement represents a notable change in how the music industry is addressing AI technology. Previously, Warner Music Group, Universal Music Group, and Sony Music Entertainment filed copyright infringement lawsuits against Udio and Suno.

These lawsuits stemmed from the platforms’ ability to generate songs using AI based on text prompts. Universal Music Group and Sony Music Entertainment are currently engaged in discussions to license their catalogs to Udio and Suno as well.

Suno's Funding Round

Demonstrating investor confidence in AI music, Suno announced a $250 million Series C funding round on Wednesday. This round values the company at $2.45 billion post-money.

Menlo Ventures led the funding round, with participation from Nvidia’s NVentures, Hallwood Media, Lightspeed, and Matrix.