Universal Music Group Settles AI Copyright Lawsuit, Plans Licensed Generative Music Platform

Universal Music Group (UMG) has settled its copyright lawsuit with AI music startup Udio, shifting from legal adversaries to strategic partners planning to launch a subscription-based AI music platform in 2026. This collaboration establishes a licensed, opt-in framework for training generative AI on UMG’s extensive catalog, ensuring artists and songwriters are compensated both for the use of their music in AI training and for subscriber-generated creations. The new platform aims to create a licensed and protected environment where users can customize, stream, and share music responsibly, incorporating measures like fingerprinting and filtering to control content usage. UMG Chairman Sir Lucian Grainge emphasized the commitment to protect artists while embracing new technologies, and Udio CEO Andrew Sanchez highlighted the opportunity to expand creative possibilities and foster a healthy commercial AI ecosystem. The deal sets a precedent in the music industry by providing a new revenue model for creators and addressing major industry concerns about generative AI’s impact. Meanwhile, Udio’s competitor Suno continues to face ongoing infringement lawsuits from major labels.