Major music labels are reportedly in talks with generative AI music platforms Suno and Udio — the very companies they sued last year for alleged copyright infringement.
According to Bloomberg, Universal Music Group, Warner Music Group, and Sony Music Entertainment are discussing potential licensing deals that would not only bring in fees but also include a small equity stake in the companies.
Sources (which Bloomberg says “declined to be identified because the talks could fall apart”) told the news outlet that if successful, the agreements could help resolve ongoing legal disputes while laying the groundwork for how AI companies compensate recording artists and rights holders in the future.
Suno and Udio have been at the forefront of the new wave of generative AI platforms. These tools allow users to type in simple prompts like “a modern rock ballad about a bad break up” and receive a full-length audio recording in return. Behind the scenes, the platforms rely on massive training datasets – likely made up of existing copyrighted material – which has drawn legal scrutiny from the industry.
Last June, the Recording Industry Association of America (RIAA), on behalf of the major labels, filed blockbuster lawsuits against Suno and Udio, alleging copyright infringement on an “unimaginable scale.” The suits accused the startups of using copyrighted recordings without permission to train their models, and sought damages of up to $150,000 per infringed work, potentially amounting to billions of dollars.
For their part, Suno and Udio have countered that the labels are wielding their intellectual property as a cudgel to stifle competition and innovation. They also argued that their use of copyrighted material falls under the “fair use” exemption to US copyright law.
The current negotiations are seen as a way to settle these cases out of court. Talks are reportedly happening in parallel with both companies, creating a bit of a race to see who might land a deal first.
Still, discussions are complex, says Bloomberg, as labels want greater control over how their music is used, while the AI startups are pushing for enough “flexibility” to continue experimenting as well as “deals at a price reasonable for startup companies”.
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