Music Publishers Sign First Industry-Wide AI Licensing Deal

The music publishing industry took a significant step toward embracing artificial intelligence technology this week, with the National Music Publishers Association announcing what it calls the first industry-wide licensing agreement with an AI music generation company.

At its annual meeting in New York on Wednesday, the NMPA revealed licensing deals with two AI music startups: Udio, a generative music platform, and Klay, which describes itself as a fan-powered platform enabling listeners to interact with music using AI tools. According to The Hollywood Reporter, which first reported the details, NMPA president David Israelite characterized the agreements as bringing creators in "as business partners, as it should be."

Why it matters

These licensing agreements represent a notable pivot for an industry that has spent the past year aggressively litigating against AI companies. The deals suggest music publishers are seeking a middle path between wholesale rejection of AI technology and allowing unlicensed use of copyrighted works. How this balance evolves will shape both the economics of music creation and the legal framework for AI training data across creative industries.

From litigation to licensing

The Udio agreement comes months after the AI startup settled lawsuits with Universal Music Group and Warner Music Group last fall. Sony Music Group remains in active litigation with the company. Member publishers will have the opportunity to review the Udio agreement and decide whether to participate starting next week.

Klay had previously secured deals with major record companies and music publishers before the NMPA announcement.

Despite these collaborative moves, Israelite told attendees the organization would continue pursuing legal action against what he termed "bad actor" AI companies. He also raised concerns about AI's role in streaming fraud and called on platforms to take preventive action. The NMPA plans to host an "AI Songs Summit" in Nashville this September to align the publishing industry on AI policy.

Industry economics and performance honors

NMPA executive Danielle Aguirre addressed ongoing revenue challenges related to Spotify and Amazon Music's bundling strategies, which combine music with audiobook offerings in ways that reduce songwriter royalties. She reported the publishing business has lost nearly $500 million due to these practices, though overall revenue reached $7.3 billion this year.

The meeting also featured performances and honors for several artists, including P!nk, who performed acoustic versions of her hits and reflected on her 25-year songwriting career. Rising country artist Carter Faith and producer-songwriter Julian Bunetta, whose credits include Teddy Swims' "Lose Control" and Sabrina Carpenter's "Espresso," were also recognized.

The Hollywood Reporter provided coverage of the event and the licensing announcements.