Warner Music Group Settles AI Music Lawsuits, Signs Licensing Deals with Suno and Udio

Reviewed byNidhi Govil

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Warner Music Group has settled copyright lawsuits and signed licensing agreements with AI music platforms Suno and Udio, marking a significant shift in the music industry's approach to artificial intelligence. The deals will allow users to create AI-generated music using WMG artists' voices and compositions, with artists maintaining control over their participation.

Warner Music Group Embraces AI Music Technology

Warner Music Group (WMG) has reached landmark licensing agreements with AI music platforms Suno and Udio, settling copyright lawsuits that marked a contentious chapter between the music industry and artificial intelligence companies

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Source: Rolling Stone

Source: Rolling Stone

The deals represent a significant shift in the music industry's approach to AI technology, moving from litigation to collaboration. WMG CEO Robert Kyncl described the Suno partnership as "a victory for the creative community that benefits everyone," emphasizing the potential for new revenue streams and fan experiences

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Source: THR

Source: THR

Artist Control and Compensation Framework

Under both agreements, WMG artists and songwriters will maintain "full control over whether and how their names, images, likenesses, voices, and compositions are used in new AI-generated music"

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. The participation structure appears to be opt-in rather than default, giving artists agency over their involvement in AI music generation

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WMG's roster includes major artists such as Lady Gaga, Coldplay, The Weeknd, Sabrina Carpenter, Ed Sheeran, and Dua Lipa, whose voices and compositions could potentially be used in AI-generated music if they choose to participate

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Platform Changes and New Business Models

As part of the Suno agreement, the platform will launch "more advanced and licensed models" that will replace its current ones in 2026. The company is also implementing new monetization strategies, requiring paid accounts for downloading audio while limiting free tier users to playing and sharing songs created on the platform

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The Udio partnership will result in a "next-generation music creation, listening, and discovery platform" powered by generative AI models trained on licensed and authorized music, set to launch in 2026

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. This subscription service will allow users to create remixes, covers, and new songs using participating artists' voices and compositions.

Source: The Verge

Source: The Verge

Industry-Wide Transformation

The settlements mark a broader industry transformation. Warner Music Group, Universal Music Group, and Sony Music Entertainment had previously sued both Suno and Udio for copyright infringement, alleging the platforms illegally used copyrighted recordings to train their AI models

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Universal Music Group and Sony Music Entertainment are reportedly in talks to license their catalogs to both platforms and settle their own lawsuits, suggesting a coordinated industry shift toward embracing AI technology under controlled terms

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Investment and Acquisition Activity

Demonstrating investor confidence in AI music technology, Suno recently raised $250 million in a Series C round at a $2.45 billion post-money valuation. The round was led by Menlo Ventures with participation from Nvidia's venture arm NVentures, along with Hallwood Media, Lightspeed, and Matrix

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In an unexpected move, Suno has also acquired WMG's Songkick concert discovery platform for an undisclosed amount. WMG had acquired Songkick's app and brand in 2017, and the platform will continue operating as a fan destination under Suno's ownership

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