Udio
The three major music companies — Sony Music, Universal Music Group and Warner Music Group — are in talks with AI music companies Suno and Udio to license their works as training data, despite suing the two startups for infringement “on an almost unimaginable scale” last summer. Now, executives in the “ethical” or “responsible” AI music space are voicing displeasure that the alleged infringers could potentially benefit from their actions.
Several of those ethical AI companies said they were led to believe they would be rewarded by the record labels for going through the tough process of licensing music from the beginning, in what one AI music company founder previously told Billboard would be “a carrot and stick approach to AI,” penalizing those who raced ahead and trained models without permission or compensation.
Trending on Billboard
“That’s all out the window,” that founder says now. “I was talking to another founder that does ethical AI voice models, and he told me, ‘F–k it. I don’t care anymore. Why does it matter to be ethical if we just get left behind?’”
Ed Newton-Rex, founder of non-profit Fairly Trained, which certifies ethically-trained AI models, adds: “If I were running a startup that had tried to do the right thing — respecting creators’ rights — and investors had rejected me because I wasn’t exploiting copyrighted work like so many others, and then this happened? I’d definitely be pissed off.”
Tracy Chan, CEO of AI music company Splash, told Billboard via email that she stands by her decision to license music from the start. “At Splash, being ethically trained wasn’t a debate — it was obvious,” she says. “We’re musicians and technologists. We believe AI should amplify creativity, not exploit it. We don’t need to scrape the world’s music to make that happen.”
It remains unclear how far along these licensing talks are between the major music companies and Suno and Udio, and if deals will even come to fruition to avert the blockbuster lawsuits. It’s common in costly and lengthy litigation like this for the two sides to discuss what it would look like to settle the dispute outside of court. Plus, licensing is what the majors have wanted from AI companies all along — does it matter how they come to it?
Multiple executives expressed fear that if the majors ditch the lawsuit and go for deals, they will set a bad precedent for the entire business. “Basically, if they do this deal, I think it would send a message to big tech that if you want to disrupt the music industry, you can do whatever you want and then ask for forgiveness later,” says Anthony Demekhin, CEO/co-founder of Tuney.
This, however, is not the first time the music business has considered a partnership with tech companies that were once their enemy. YouTube, for example, initially launched without properly licensing all of the music on its platform first. In his 2024 New Years’ address to staff, Lucian Grainge, CEO/chairman of UMG, alluded to this, and how he would do it differently this time with his so-called “responsible AI” initiative. “In the past, new and often disruptive technology was simply released into the world, leaving the music community to develop the model by which artists would be fairly compensated and their rights protected,” he wrote, adding that “in a sharp break with the past,” UMG had formed a partnership with YouTube to “give artists a seat at the table” to shape the company’s AI products, and that the company would also collaborate “with several [other] platforms on numerous opportunities and approaches” in the AI space.
Another part of Grainge’s “responsible AI” initiative was “to lobby for ‘guardrails,’ that is public policies setting basic rules for AI.” Mike Pelczynski, co-founder of ethical AI voice company Voice-Swap, also worries that if these deals go through, they could weaken the music industry’s messaging to Capitol Hill, where bills like the NO FAKES Act are still in flux. “All the messaging we had before, all the hard-lining about responsible AI from the beginning, it’s gone,” he says. “Now, if policy makers look at [the music business] they might say, ‘Wait, what side should we take? Where do you stand?’”
If talks about licenses for Suno and Udio move forward, determining exactly how that license works, and how artists will be paid, will be complex. To date, almost all “ethical” AI companies are licensing their musical training data from production libraries, which offer simple, one-stop licenses for songs. Alex Bestall, CEO of music production house and AI company Rightsify, says that the structure of those deals are typically “flat-fee blanket licenses for a fixed term, often one to three years or in some cases perpetuity… all data licensing [music or otherwise] is pretty standardized at this point.”
It’s unclear if the deals the majors have discussed with Suno and Udio will follow this framework, but if they did, the question then comes — how do the majors divide up those fees for their artists and writers? The Wall Street Journal reported that “the [music] companies want the startups to develop fingerprinting and attribution technology — similar to YouTube’s content ID — to track when and how a song is used.” In that scenario, the money received would be given to signees based on usage.
While there are a few startups working on music attribution technology right now, multiple experts tell Billboard they don’t think the tech is ready yet. “Attribution is nowhere,” says Newton-Rex, who also previously worked as vp of audio at Stability AI. “It’s not even close. There’s no system that I have seen that would do a decent job of accurately assigning attribution to what has inspired a given song.”
Even the possibility of deals between the parties has sparked a larger conversation about how to handle tech companies who ask for forgiveness — and not for permission — from the music business.
“If the two biggest offenders actually become the legal standard, it’s effectively like making Pirate Bay into Spotify,” says Demekhin. “I understand it from a business perspective because it’s the path of least resistance [to settle and get a license now]. But this could send a message to tech that could bite the industry on the next wave.”
Over the weekend, Bloomberg broke the news that the Sony Music, Universal Music Group and Warner Music Group are in talks with Suno and Udio to license their music to the artificial intelligence startups. If the deals go through, they could help settle the major music companies’ massive copyright infringement lawsuit against Suno and Udio, filed last summer.
Billboard confirmed that the deals in discussion would include fees and possible equity stakes in Suno and Udio in exchange for licensing the music — which the two AI firms have already been using without a license since they launched over a year ago.
That sounds like a potentially peaceful resolution to this clash over the value of copyrighted music in the AI age. But between artist buy-in, questions over how payments would work and sensitivities on all sides, the deals could be harder to pull off than they seem. Here’s why.
Trending on Billboard
You need everyone on board
Ask anyone who’s tried to license music before: it’s a tedious process. This is especially true when a song has multiple songwriters, all signed to different companies — which is to say, almost all of pop music today. Since any music that is used as training data for an AI model will employ both its master recording copyright and its underlying musical work copyright, Suno and Udio cannot stop at just licensing the majors’ shares of the music. They will also need agreements from independent labels and publishers, too, to use a comprehensive catalog.
And what about the artists and songwriters signed to these companies? Generative AI music is still controversial today, and it is foreseeable that a large number of creatives will not take too kindly to their labels and publishers licensing their works for AI training without their permission. One can imagine that the music companies, to avoid a revolt from signees, would allow talent to either opt-out of or opt-in to this license — but as soon as they do that, they will be left with a patchwork catalog to license to Suno and Udio. Even if a song has one recording artist and five songwriters attached to it, it only takes one of those people to say no to this deal to eliminate the track from the training pool.
Is the expiration date really the expiration date?
Licensing music to train AI models typically takes the form of a blanket license, granted by music companies, that lasts between one and three years, according to Alex Bestall, CEO of Rightsify, a production music library and AI company. Other times it will be done in perpetuity. Ed Newton-Rex, former vp of audio for Stability AI and founder of non-profit Fairly Trained, previously warned Billboard that companies that license on a temporal basis should look out for what happens when a deal term ends: “There’s no current way to just untrain a model, but you can add clauses to control what happens after the license is over,” he said.
Attribution technology seems great — but is still very new
Many experts feel that the best way to remunerate music companies and their artists and songwriters is to base any payouts on how often their work is used in producing the outputs of the AI model. This is known as “attribution” — and while there are companies, like Sureel AI and Musical AI, out there that specialize in this area, it’s still incredibly new. Multiple music industry sources tell Billboard they are not sure the current attribution models are quite ready yet, meaning any payment model based on that system may not be viable, at least in the near term.
Flat-fee licenses are most common, but leave a lot to be desired
Today, Bestall says that flat-fee blanket licenses are the most common form of AI licensing. Given the complexities of fractional licensing (i.e., needing all writers to agree) with mainstream music, the AI music companies that are currently licensing their training data are typically going to production libraries, since those tend to own or control their music 100%. It’s hard to know if this model will hold up with fractional licensing at the mainstream music companies — and how they’ll choose to divide up these fees to their artists.
Plus, Mike Pelczynski, founder of music tech advisory firm Forms and Shapes and former head of strategy for SoundCloud, wrote in a blog post that “flat-fee deals offer upfront payments but limit long-term remuneration. As AI scales beyond the revenue potential of these agreements, rights holders risk being locked into subpar compensation. Unlike past models, such as Facebook’s multi-year deals, AI platforms will evolve in months, not years, leaving IP holders behind. Flat fees, no matter how high, can’t match the exponential growth potential of generative AI.”
There’s still bad blood
The major music companies will likely have a hard time burying the hatchet with Suno and Udio, given how publicly the two companies have challenged them. Today, Suno and Udio are using major label music without any licenses, and that defiance must sting. Suno has also spoken out against the majors, saying in a court filing that “what the major record labels really don’t want is competition. Where Suno sees musicians, teachers and everyday people using a new tool to create original music, the labels see a threat to their market share.”
Given that context, there is a real reputational risk here for the labels, who also represent many stakeholders with many different opinions on the topic — not all of them positive. For this licensing maneuver to work, the majors need to be able to feel (or at least position themselves to look like) they came out on top in any negotiation, particularly to their artists and songwriters, and show that the deals are in everyone’s best interests. It’s a lot to pull off.
Universal Music, Warner Music and Sony Music are in talks with Udio and Suno to license their music to the artificial intelligence startups, Billboard has confirmed, in deals that could help settle blockbuster lawsuits over AI music.
A year after the labels filed billion-dollar copyright cases against Udio and Suno, all three majors are discussing deals in which they would collect fees and receive equity in return for allowing the startups to use music to train their AI models, according to sources with knowledge of the talks. Bloomberg first reported the news on Sunday (June 1).
If reached, such deals would help settle the litigation and establish an influential precedent for how AI companies pay artists and music companies going forward, according to the sources, who requested anonymity to discuss the talks freely.
Trending on Billboard
Such an agreement would mark an abrupt end to a dispute that each side has framed as an existential clash over the future of music. The labels say the startups have stolen music on an “unimaginable scale” to build their models and are “trampling the rights of copyright owners”; Suno and Udio argue back that the music giants are abusing intellectual property to crush upstart competition from firms they see as a “threat to their market share.”
Settlement talks are a common and continuous feature of almost any litigation and do not necessarily indicate that any kind of deal is imminent. It’s unclear how advanced such negotiations are, or what exactly each side would be getting. And striking an actual deal will require sorting out many complex and novel issues relating to brand-new technologies and business models.
Reps for all three majors declined to comment. Suno and Udio did not immediately return requests for comment. A rep for the RIAA, which helped coordinate the lawsuits, declined to comment.
If Suno and Udio do grant equity to the majors in an eventual settlement, it will call to mind the deals struck by Spotify in the late 2000s, in which the upstart technology company gave the music industry a partial ownership stake in return for business-critical content. Those deals turned out to be massively lucrative for the labels and helped Spotify grow into a streaming behemoth.
The cases against Udio and Suno are two of many lawsuits filed against AI firms by book authors, visual artists, newspaper publishers and other creative industries, who have argued AI companies are violating copyrights on a massive scale by using copyrighted works to train their models. AI firms argue that it’s legal fair use, transforming all those old works into “outputs” that are entirely new.
That trillion-dollar question remains unanswered in the courts, where many of the lawsuits, including those against Suno and Udio, are still in the earliest stages. But last month, the U.S. Copyright Office came out against the AI firms, releasing a report that said training was likely not fair use.
“Making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets, especially where this is accomplished through illegal access, goes beyond established fair use boundaries,” the office wrote in the report.
Even with the legal landscape unsettled, some content companies have struck deals with AI firms. Just last week, the New York Times — which is actively litigating one of the copyright cases — struck a deal to license its editorial content to Amazon for AI training. Last fall, Microsoft signed a deal with HarperCollins to use the book publisher’s nonfiction works for AI model training.
Music companies have not struck any such sweeping deals, and instead have preferred more limited partnerships with tech companies for “ethical” AI tools. UMG signed a deal last summer with SoundLabs for an AI-powered voice tool for artists and another one in November with an AI music company called KLAY. Sony made an early-stage investment in March in a licensed AI platform called Vermillio.
Udio, a generative AI music company backed by will.i.am, Common and a16z, has partnered with Audible Magic to fingerprint all tracks made using the platform at the moment they are created and to check the generated works, using Audible Magic’s “content control pipeline,” for any infringing copyrighted material.
By doing this, Udio and Audible Magic have created a way for streaming services and distributors to trace which songs submitted to their platforms are made with Udio’s AI. The company also aims to proactively detect and block use of copyrighted material that users don’t own or control.
“Working with Audible Magic allows us to create a transparent signal in the music supply chain. By fingerprinting at the point of generation, we’re helping establish a new benchmark for accountability and clarity in the age of generative music,” says Andrew Sanchez, co-founder of Udio. “We believe that this partnership will open the door for new licensing structures and monetization pathways that will benefit stakeholders across the industry from artists to rights holders to technology platforms.”
Trending on Billboard
Last summer, Udio, and its top competitor Suno, were both sued by the three major record companies for training their AI music models on the companies’ copyrighted master recordings. In the lawsuits, the majors argued this constituted copyright infringement “at an almost unimaginable scale.” Additionally, the lawsuits pointed out that the resulting AI-generated songs from Udio and Suno could “saturate the market with machine-generated content that will directly compete with, cheapen and ultimately drown out the genuine sound recordings on which [the services were] built.”
Udio’s new partnership with Audible Magic stops short of promising to eliminate copyright material from its training process, as the majors want, but it shows that Udio is trying out alternative solutions to appease the music establishment. Suno also has a partnership with Audible Magic, announced in October 2024, but the two partnerships believes these deals hold key differences. Suno’s integration focus more specifically on its “audio inputs” and “covers” features, which allow users to generate songs based on an audio file they upload. With Audible Magic’s technology, Suno prevents users from unauthorized uploads of copyrighted material.
“This partnership demonstrates Udio’s substantial commitment to rights holder transparency and content provenance,” says Kuni Takahashi, CEO of Audible Magic. “Registering files directly from the first-party source is a clean and robust way to identify the use of AI-generated music in the supply chain.”
AI music firms Suno and Udio are firing back with their first responses to sweeping lawsuits filed by the major record labels, arguing that they were free to use copyrighted songs to train their models and claiming the music industry is abusing intellectual property to crush competition.
In legal filings on Thursday, the two firms admitted to using proprietary materials to create their artificial intelligence, with Suno saying it was “no secret” that the company had ingested “essentially all music files of reasonable quality that are accessible on the open Internet.”
But both companies said that such use was clearly lawful under copyright’s fair use doctrine, which allows for the reuse of existing materials to create new works.
Trending on Billboard
“What Udio has done — use existing sound recordings as data to mine and analyze for the purpose of identifying patterns in the sounds of various musical styles, all to enable people to make their own new creations — is a quintessential ‘fair use,’” Udio wrote in its filing. “Plaintiffs’ contrary vision is fundamentally inconsistent with the law and its underlying values.”
The filings, lodged by the same law firm (Latham & Watkins) that reps both companies, go beyond the normal “answer” to a lawsuit — typically a sparse document that simply denies each claim. Instead, Suno and Udio went on offense, with extended introductions that attempt to frame the narrative of a looming legal battle that could take years to resolve.
In doing so, they took square aim at the major labels (Universal Music Group, Warner Music Group and Sony Music Entertainment) that filed the case in June — a group that they said “dominates the music industry” and is now abusing copyright law to maintain that power.
“What the major record labels really don’t want is competition,” Suno wrote in its filing. “Where Suno sees musicians, teachers and everyday people using a new tool to create original music, the labels see a threat to their market share.”
Suno and Udio have quickly become two of the most important players in the emerging field of AI-generated music. Udio has already produced what could be considered an AI-generated hit with “BBL Drizzy,” a parody track popularized with a remix by super-producer Metro Boomin and later sampled by Drake himself. And as of May, Suno had raised a total of $125 million in funding to create what Rolling Stone called a “ChatGPT for music.”
In June, the major labels sued both companies, claiming they had infringed copyrighted music on an “unimaginable scale” to train their models. The lawsuits accused the two firms of “trampling the rights of copyright owners” as part of a “mad dash to become the dominant AI music generation service.”
The case followed similar lawsuits filed by book authors, visual artists, newspaper publishers and other creative industries, which collectively pose what could be a trillion-dollar legal question: Is it infringement to use vast troves of proprietary works to build an AI model that spits out new creations? Or is it just a form of legal fair use, transforming all those old works into something entirely new?
In Thursday’s response, Suno and Udio argued unequivocally that it was the latter. They likened their machines to a “human musician” who had played earlier songs to learn the “building blocks of music” — and then used what they had learned to create entirely new works in existing styles.
“Those genres and styles — the recognizable sounds of opera, or jazz, or rap music — are not something that anyone owns,” Suno wrote in its filing. “Our intellectual property laws have always been carefully calibrated to avoid allowing anyone to monopolize a form of artistic expression, whether a sonnet or a pop song.”
The lawsuit from the labels, Suno and Udio say, are thus an abuse of copyright law, aimed at claiming improper ownership over “entire genres of music.” They called the litigation an “attempt to misuse IP rights to shield incumbents from competition and reduce the universe of people who are equipped to create new expression.”
Both filings hint at how Suno and Udio will make their fair use arguments. The two companies say the cases will not really turn on the “inputs” — the millions of songs used to train the models — but rather on the “outputs,” or the new songs that are created. While the labels are claiming that the inputs were illegally copied, the AI firms say the music companies “explicitly disavow” that any output was a copycat.
“That concession will ultimately prove fatal to plaintiffs’ claims,” Suno wrote in its filing. “It is fair use under copyright law to make a copy of a protected work as part of a back-end technological process,invisible to the public, in the service of creating an ultimately non-infringing new product.”
A spokeswoman and an attorney for the labels did not immediately return a request for comment.
The lawsuits filed by the major labels against the AI companies Suno and Udio could be the most important cases to the music business since the Supreme Court Grokster decision, as I explained in last week’s Follow the Money column. The outcomes are hard to predict, however, because the central issue will be “fair use,” a U.S. legal doctrine shaped by judicial decisions that involves famously — sometimes notoriously — nuanced determinations about art and appropriation. And although most creators focus more on issues around generative AI “outputs” — music they’ll have to compete with or songs that might sound similar to theirs — these cases involve the legality of copying music for the purposes of training AI.
Neither Suno nor Udio has said how they’re trained their AI programs, but both have essentially said that copying music in order to do so would qualify as fair use. Determining that could touch on the development of Google Books, the compatibility of the Android operating system, and even a Supreme Court case that involves Prince, Andy Warhol and Vanity Fair. It’s the kind of fair use case that once inspired a judge to call copyright “the metaphysics of the law.” So let’s get metaphysical!
Trending on Billboard
Fair use essentially provides exceptions to copyright, usually for the purpose of free expression, allowing for quotation (as in book or film reviews) and parody (to comment on art), among other things. (The iconic example in music is the Supreme Court case over 2 Live Crew’s parody of Roy Orbison’s “Oh, Pretty Woman.”) These determinations involve a four-factor test that weighs “the purpose and character of the use”; “the nature of the copyrighted work”; how much and how important a part of the work is used; and the effect of the use upon the potential market value of the copyrighted work. Over the last decade or so, though, the concept of “transformative use,” derived from the first factor, expanded in a way that allowed the development of Google Books (the copying of books to create a database and excerpts) and the use of some Oracle API code in Google’s Android system — which could arguably be said to go beyond the origins of the concept.
Could copying music for the purposes of machine learning qualify as well?
In a paper on the topic, “Fair Use in the U.S. Redux: Reformed or Still Deformed,” the influential Columbia Law School professor Jane Ginsburg suggests that the influence of the transformative use argument might have reached its peak. (I am oversimplifying a very smart paper, and if you are interested in this topic, you should read it.)
The Supreme Court decision on the Google-Oracle case involved part of a computer program, far from the creative “core” of copyright, and music recordings would presumably be judged differently. The Supreme Court also made a very different decision last year in a case that pitted the Andy Warhol Foundation for the Visual Arts against prominent rock photographer Lynn Goldsmith. The case involved an Andy Warhol silkscreen of Prince, based on a Goldsmith photograph that the magazine Vanity Fair had licensed for Warhol to use. Warhol used the photo for an entire series — which Goldsmith only found out about when the magazine used the silkscreen image again for a commemorative issue after Prince died.
On the surface, this seemed to cast the Supreme Court Justices as modern art critics, in a position to judge all appropriation art as infringing. But the case wasn’t about whether Warhol’s silkscreen inherently infringed Goldsmith’s copyright but about whether it infringed it for licensed use by a magazine, in a way where it could compete with the original photo. There was a limit to transformative use, after all. “The same copying,” the court decided, “may be fair when used for one purpose but not another.”
So it might constitute fair use for Google to copy entire books for the purpose of creating a searchable database about those books with excerpts from them, as it did for Google Books — but not necessarily for Suno or Udio to copy terabytes of recordings to spur the creation of new works to compete with them, especially if it results in similar works. In the first case, it’s hard to find real economic harm — there will never be much of a market for licensing book databases — but there’s already a nascent market for licensing music to train AI programs. And, unlike Google Books, the AI programs are designed to make music to compete with the recordings used to train them. Obviously, licensing music to train an AI program is what we might call a secondary use — but so is turning a book into a film, and no one doubts they need permission for that.
All of this might seem like I think the major labels will win their cases, but that’s a tough call — the truth is that I just don’t think they’ll lose. And there’s a lot of space between victory and defeat here. If one of these cases ends up going to the Supreme Court — and if one of these doesn’t, another case about AI training surely will within the next few years — the decision might be more limited than either side is looking for, since the court has tended to step lightly around technology issues.
It’s also possible that the decision could depend on whether the outputs that result from all of this training are similar enough to copyrighted works to qualify, or plausibly qualify, as infringing. Both label lawsuits are full of such examples, presumably because that could make a difference. These cases are about the legality of AI inputs, but a fair use determination on that issue could easily involve whether those inputs lead to infringing output.
In the end, Ginsburg suggests, “system designers may need to disable features that would allow users to create recognizable copies.” Except that — let’s face it — isn’t that really part of the fun? Sure, AI music creation might eventually grow to maturity as some kind of art form — it already has enormous practical value for songwriters — but for ordinary consumers it’s still hard to beat Frank Sinatra singing Lil Jon’s “Get Low.” Of course, that could put a significant burden on AI companies — with severe consequences for crossing a line that won’t always be obvious. It might be easier to just license the content they need. The next questions, which will be the subject of future columns, involve exactly what they need to license and how they might do that, since it won’t be easy to get all the rights they need — or in some cases even agree on who controls them.
For a little over a year, since the Fake Drake track bum rushed the music business, executives have been debating whether generative artificial intelligence is a threat or an opportunity. The answer is both — creators are already using AI tools and they already compete with AI music. But the future will be shaped by the lawsuits the major labels filed two weeks ago against Suno and Udio for copyright infringement for allegedly using the labels’ music to train their AI programs.
Like most debates about technology, this one will be resolved in real time — Internet start-ups tend to believe that it’s easier to ask forgiveness than to get permission. Although neither Suno nor Udio has said that it trained its program on major label music, the label lawsuits point out that both companies have said that using copyrighted works in this manner would be “fair use,” a defense for otherwise infringing conduct. They’re not admitting they did it — just defending themselves in case they did.
Trending on Billboard
Whether this qualifies as fair use is well over a million-dollar question, since statutory damages can reach $150,000 per work infringed. The stakes are even higher than that, though. If ingesting copyrighted works on a mass scale to train an AI is allowed under fair use, the music business could have a hard time limiting, controlling, or making money on this technology.
If it’s not, the labels will gain at least some control over these companies, and perhaps the entire nascent sector. There are other ways to limit AI, from legislation to likeness rights, but only copyright law has the kind of statutory damages that offer real leverage.
Although neither Suno nor Udio has issued a legal response, Suno CEO Mikey Shulman released a statement that said the labels had “reverted to their old lawyer-led playbook.” The obvious reference is Napster, since most people believe that in the late ‘90s the music business saw the future and decided to sue it.
That’s not exactly what happened. The major labels knew that the future was digital — they lobbied for the 1995 Digital Performance Right in Sound Recordings Act, which ensured that streaming services had to pay to play recordings in the U.S., even though traditional radio stations don’t. They just didn’t want peer-to-peer services to distribute their content for nothing — or to have to negotiate with them while they were doing so. In July 2000, three months after the major labels sued Napster, leading executives sat down with the company to try to figure out a deal, but they couldn’t agree; the labels negotiated as though Napster needed a license and Napster negotiated as though it didn’t. In the end, after a decade of lawsuits and lost business, creators and rightsholders established their right to be paid for online distribution and the music sector began recovering.
And here we are again: History isn’t repeating itself, but it seems to be rhyming. If the labels negotiated with Suno and Udio now, how much would those companies be willing to pay for rights they may or may not need? It’s easy to make fun of either side, but it’s hard to know how much to charge for rights, or pay for them, before you even know if you need them.
These lawsuits aren’t about whether creators and rightsholders should embrace or avoid AI — it’s coming, for good and ill. The question, in modern terminology, is whether the embrace will be consensual, and under what terms. Most creators and rightsholders want to do business with AI companies, as long as that actually means business — negotiating deals in something that resembles a free market.
What they’re afraid of is having technology companies build empires on their work without paying to use it — especially to create a product that creates music that will compete with them. That depends on the outcome of these lawsuits. Because if you don’t have the right to say no, you can’t really get to a fair yes.
A couple of weeks ago, at a culture conference organized by the German recorded music trade organization, I heard German Justice Minister Marco Buschmann put this as well as anyone I’ve ever heard. “The moment people have the opportunity to say ‘No’ and to enforce this ‘No,’ they gain a legal negotiating position,” he said in a speech. (Buschmann also makes electronic music, as it happens.) In the European Union, rightsholders can opt out of AI ingestion, which is far from ideal but better than nothing.
What happens in the U.S. — which often shapes the global media business — might hinge on the results of these lawsuits. There are two dozen copyright lawsuits about AI, but these look to be among the most important. Some of the others are mired in jurisdictional maneuvering, while others simply aren’t as strong: a lawsuit filed by The New York Times could involve a different fair use determination if the ingested articles are used as sources but not to generate new work. These cases are straightforward, but they won’t move fast: It’s easy to imagine the issue going to the Supreme Court.
Despite the high stakes — and what will almost certainly be a rap beef’s worth of sniping back and forth — determinations of fair use involve a considerable amount of nuance. Fair use makes it legal in some cases to excerpt or even use all of a copyrighted work without permission, usually for the purposes of commentary. (An iconic Supreme Court case involved 2 Live Crew’s parody of the Roy Orbison song “Oh, Pretty Woman.”) This is far from that, but Suno and Udio will presumably argue that their actions qualify as “transformative use” in the way the Google Books project did. Next week I’ll write about the arguments we can expect to hear, the decisions we could see, and what could happen while we wait for them.
On Monday (June 24), the three major music companies filed lawsuits against artificial intelligence (AI) music startups Suno and Udio, alleging the widespread infringement of copyrighted sound recordings “at an almost unimaginable scale.” Spearheaded by the RIAA, the two similar lawsuits arrived four days after Billboard first reported that the labels were seriously considering legal action against the two startups.
Filed by plaintiffs Sony Music, Warner Music Group and Universal Music Group, the lawsuits allege that Suno and Udio have unlawfully copied the labels’ sound recordings to train their AI models to generate music that could “saturate the market with machine-generated content that will directly compete with, cheapen and ultimately drown out the genuine sound recordings on which [the services were] built.”
Trending on Billboard
Hours later, Suno CEO Mikey Shulman responded to the lawsuit with a statement sent to Billboard. “Suno’s mission is to make it possible for everyone to make music,” he said. “Our technology is transformative; it is designed to generate completely new outputs, not to memorize and regurgitate pre-existing content. That is why we don’t allow user prompts that reference specific artists. We would have been happy to explain this to the corporate record labels that filed this lawsuit (and in fact, we tried to do so), but instead of entertaining a good faith discussion, they’ve reverted to their old lawyer-led playbook. Suno is built for new music, new uses, and new musicians. We prize originality.”
An RIAA spokesperson fired back at Shulman’s comment, saying: “Suno continues to dodge the basic question: what sound recordings have they illegally copied? In an apparent attempt to deceive working artists, rightsholders, and the media about its technology, Suno refuses to address the fact that its service has literally been caught on tape — as part of the evidence in this case — doing what Mr. Shulman says his company doesn’t do: memorizing and regurgitating the art made by humans. Winners of the streaming era worked cooperatively with artists and rightsholders to properly license music. The losers did exactly what Suno and Udio are doing now.”
Udio responded on Tuesday (June 25) with a lengthy statement posted to the company’s website. You can read it in full below.
In the past two years, AI has become a powerful tool for creative expression across many media – from text to images to film, and now music. At Udio, our mission is to empower artists of all kinds to create extraordinary music. In our young life as a company, we have sat in the studios of some of the world’s greatest musicians, workshopped lyrics with up-and-coming songwriters, and watched as millions of users created extraordinary new music, ranging from the funny to the profound.
We have heard from a talented musician who, after losing the ability to use his hands, is now making music again. Producers have sampled AI-generated tracks to create hit songs, like ‘BBL Drizzy’, and everyday music-lovers have used the technology to express the gamut of human emotions from love to sorrow to joy. Groundbreaking technologies entail change and uncertainty. Let us offer some insight into how our technology works.
Generative AI models, including our music model, learn from examples. Just as students listen to music and study scores, our model has “listened” to and learned from a large collection of recorded music.
The goal of model training is to develop an understanding of musical ideas — the basic building blocks of musical expression that are owned by no one. Our system is explicitly designed to create music reflecting new musical ideas. We are completely uninterested in reproducing content in our training set, and in fact, have implemented and continue to refine state-of-the-art filters to ensure our model does not reproduce copyrighted works or artists’ voices.
We stand behind our technology and believe that generative AI will become a mainstay of modern society.
Virtually every new technological development in music has initially been greeted with apprehension, but has ultimately proven to be a boon for artists, record companies, music publishers, technologists, and the public at large. Synthesizers, drum machines, digital recording technology, and the sound recording itself are all examples of once-controversial music creation tools that were feared in their early days. Yet each of these innovations ultimately expanded music as an art and as a business, leading to entirely new genres of music and billions of dollars in the pockets of artists, songwriters and the record labels and music publishers who profit from their creations.
We know that many musicians — especially the next generation — are eager to use AI in their creative workflows. In the near future, artists will compose music alongside their fans, amateur musicians will create entirely new musical genres, and talented creators — regardless of means — will be able to scale the heights of the music industry.
The future of music will see more creative expression than ever before. Let us use this watershed moment in technology to expand the circle of creators, empower artists, and celebrate human creativity.
The three major music companies filed lawsuits against AI music companies Suno and Udio on Monday, alleging the widespread infringement of copyrighted sound recordings “at an almost unimaginable scale.” The lawsuits, spearheaded by the Recording Industry Association of America (RIAA), arrive four days after Billboard first reported the news the labels were seriously considering legal action against the two start-ups.
Filed by plaintiffs that include Sony Music, Warner Music Group and Universal Music Group, the lawsuits allege that Suno and Udio have unlawfully copied the labels’ sound recordings to train their AI models to generate music that could “saturate the market with machine-generated content that will directly compete with, cheapen and ultimately drown out the genuine sound recordings on which [the services were] built.”
“Building and operating [these services] requires at the outset copying and ingesting massive amounts of data to ‘train’ a software ‘model’ to generate outputs,” the lawyers for the major labels explain. “For [these services], this process involved copying decades worth of the world’s most popular sound recordings and then ingesting those copies [to] generate outputs that imitate the qualities of genuine human sound recordings.”
Trending on Billboard
“Since the day it launched, Udio has flouted the rights of copyright owners in the music industry as part of a mad dash to become the dominant AI music generation service,” the lawsuit against Udio reads. “Neither Udio, nor any other generative AI company, can be allowed to advance toward this goal by trampling the rights of copyright owners.”
The lawsuit is seeking both an injunction to bar the companies from continuing to train on the copyrighted songs, as well as damages from the infringements that have already taken place. Neither Suno nor Udio immediately returned requests for comment on Monday.
Suno and Udio have quickly become two of the most advanced and important players in the emerging field of generative AI music. While many competitors only create instrumentals or lyrics or vocals, Suno and Udio can generate all three in the click of a button with shocking precision. Udio has already produced what could be considered the first AI-generated hit song with the Drake diss track “BBL Drizzy,” which was generated on the platform by comedian King Willonius and popularized by a Metro Boomin remix. Suno has also achieved early success since its December 2023 launch, raising $125 million in funding from investors like Lightspeed Venture Partners, Matrix, Nat Friedman and Daniel Gross.
Both companies have declined to comment on whether or not unlicensed copyrights were part of their datasets. In a previous interview with Billboard, Udio co-founder David Ding said simply that the company trained on “good music.” However, in a series of articles for Music Business Worldwide, founder of AI music safety nonprofit Fairly Trained, Ed Newton-Rex, found that he was able to generate music from Suno and Udio that “bears a striking resemblance to copyrighted music. This is true across melody, chords, style and lyrics,” he wrote.
The complaints against the two companies also make the case that copyrighted material was used to train these models. Some of the circumstantial evidence cited in the lawsuits include generated songs by Suno and Udio that sound just like the voices of Bruce Springsteen, Lin-Manuel Miranda, Michael Jackson and ABBA; outputs that parrot the producer tags of Cash Money AP and Jason Derulo; and outputs that sound nearly identical to Mariah Carey’s “All I Want For Christmas Is You,” The Beach Boys’ “I Get Around,” ABBA’s “Dancing Queen,” The Temptations’ “My Girl,” Green Day’s “American Idiot,” and more.
In a recent Rolling Stone profile of Suno, investor Antonio Rodriguez admitted that the start-up does not have licenses for whatever music it has trained on but added that it was not a concern to him. Knowing that labels and publishers could sue was just “the risk we had to underwrite when we invested in the company, because we’re the fat wallet that will get sued right behind these guys… Honestly, if we had deals with labels when this company got started, I probably wouldn’t have invested in it. I think that they needed to make this product without the constraints.”
Many AI companies argue that training is protected by copyright’s fair use doctrine — an important rule that allows people to reuse protected works without breaking the law. Though fair use has historically allowed for things like news reporting and parody, AI firms say it applies equally to the “intermediate” use of millions of works to build a machine that spits out entirely new creations.
Anticipating that defense from Suno and Udio, the lawyers for the major labels argue that “[Suno and Udio] cannot avoid liability for [their] willful copyright infringement by claiming fair use. The doctrine of fair use promotes human expression by permitting the unlicensed use of copyrighted works in certain, limited circumstances, but [the services] offe[r] imitative machine-generated music—not human creativity or expression.”
News of the complaints filed against Suno and Udio follow up a previous lawsuit that also concerned the use of copyrighted materials to train models without a license. Filed by UMG, Concord and ABKCO in October against Anthropic, a major AI company, that case focused more specifically on copied lyrics.
In a statement about the lawsuits, RIAA CEO and chairman Mitch Glazier says, “The music community has embraced AI and we are already partnering and collaborating with responsible developers to build sustainable AI tools centered on human creativity that put artists and songwriters in charge. But we can only succeed if developers are willing to work together with us. Unlicensed services like Suno and Udio that claim it’s ‘fair’ to copy an artist’s life’s work and exploit it for their own profit without consent or pay set back the promise of genuinely innovative AI for us all.”
RIAA Chief Legal Officer Ken Doroshow adds, “These are straightforward cases of copyright infringement involving unlicensed copying of sound recordings on a massive scale. Suno and Udio are attempting to hide the full scope of their infringement rather than putting their services on a sound and lawful footing. These lawsuits are necessary to reinforce the most basic rules of the road for the responsible, ethical, and lawful development of generative AI systems and to bring Suno’s and Udio’s blatant infringement to an end.”
-
Pages