Major Record Labels Engage in Landmark AI Music Licensing Talks with Udio and Suno

Major record labels are in talks with AI music generation companies Udio and Suno to establish licensing agreements for copyrighted music. Discussions involve licensing terms, compensation models, equity stakes, and control vs. flexibility. A successful agreement could avoid legal battles and set a precedent for the music industry and other creative fields.

Major record labels, including Universal Music Group, Warner Music Group, and Sony Music Entertainment, are reportedly in licensing talks with AI music generation companies Udio and Suno. The discussions aim to establish licensing agreements for the use of copyrighted music, potentially setting a precedent for the music industry and other creative fields.

The reported talks come amid ongoing legal disputes between the record labels and the AI startups. Last year, the major labels sued Udio and Suno for copyright infringement, alleging that the AI companies used their recordings to train their systems without permission. The startups have argued that their use of copyrighted materials falls under the "fair use" exemption of US copyright law.

Sources familiar with the discussions have indicated that the record labels are seeking license fees and a small amount of equity in Udio and Suno. The AI platforms, on the other hand, are pushing for flexibility to experiment and want deals at a price reasonable for startup companies. Any agreement would help settle the ongoing lawsuits and establish a framework for how AI companies compensate recording artists for their work.

The negotiations are complex, with the record labels pushing for greater control over the use of their work and the AI startups seeking flexibility. The deals could take a long time to form, if they materialize at all. The record labels' cautious optimism about AI technology is evident in their desire to collaborate with responsible developers while also defending copyright protections.

The reported talks follow similar licensing agreements struck between OpenAI and companies like News Corp., the Associated Press, and Vox Media. The music industry has expressed a desire to protect its copyrights while also leaning into new technology, as seen in the growth of streaming services like Spotify Technology.

A successful agreement between the major labels and Udio and Suno could avoid legal battles and set a new precedent for how disputes of this sort are handled in the future. The negotiations are ongoing, and the outcome remains uncertain. However, the talks highlight the industry's willingness to adapt to new technologies and find mutually beneficial solutions.

References:
[1] https://www.musicbusinessworldwide.com/universal-warner-and-sony-in-talks-to-license-ai-music-generators-suno-and-udio-report/
[2] https://www.businesstimes.com.sg/lifestyle/record-labels-talks-license-music-ai-firms-udio-suno
[3] https://www.avclub.com/big-3-labels-considering-licensing-music-ai-startups